Forex: USD/JPY: Dollar hits resistance at 98.50/60 level and turns down

Dollar attempt to return to yesterday’s levels has been aborted and after bouncing from 97.90 intra-week low, the Dollar has been unable to break through 98.50/60 resistance area and the pair returns to levels close to 98.00.

Despite the failure to break 98.60, Carol Harmer, technical analyst at Charmer Charts.com advances the possibility of another assault to the mentioned level: “Sellers will be ready at 98.60 and buyers always hopeful of dodging through the wave of sellers to break the 98.60 region thus giving upward momentum to 99.15/20 once more. Profit taking around these levels should initially cap, but buyers will be aggrieved at their failure to break 99.60 and will once more aim for this resistance.”

In case of failure, Harmer advances lower levels: “If the sellers hold this again then hope will fade for a higher market, as the buyers take the beating and retreat looking to re-enter at 97.95.”