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USD/JPY churning below 99.52 resistance for third session

FXstreet.com (Barcelona) -The USD/JPY rebounded sharply beginning mid-week last week but still has yet to eclipse the 9/12 close of 99.52.

Battle going on for direction of USD/JPY

The pressure on the upside for USD/JPY comes in the form of the “risk-on / carry trade” phenomenon – which was the main explanation given for Thursday’s rally. The downside pressure comes from the fact that the US FOMC has made clear their intention to leave the QE3 stimulus program in effect for as long as they can justify doing so. There is no clear winner in this battle yet – and ver little edge to be had by the bulls or the bears right now.

Technical outlook for USD/JPY

Technicians say the USD/JPY is in the middle of very short-term support at 97.76 and resistance at 99.52. They note that there is little edge to be had by the bulls or the bears until USD/JPY breaks through one of those boundaries.

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