USDJPY formed a trading range between 88.01 and 92.32. Moving sideways in the range is expected and deeper decline to 88.50 is possible next week. However, rebound would more likely be seen before breaking below 88.01 previous low and another rise to 95.00 is still possible after consolidation. On the down side, the fall from 92.32 could possibly be resumption of downtrend, a break below 88.01 will indicate that the downward trend from 101.43 has resumed, then another fall could take price to retest 87.12 long term support.
For long term analysis, USDJPY might be forming a cycle bottom at 88.01 level on weekly chart. Key resistance is at 92.53, a breakout of this level will confirm the cycle bottom.
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. Forex Capital Markets LLC. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.