Forex: USD/JPY trades over 91.00, merging preceding gains

The Dollar still continued with its recovery against Yen from 7-month low at 90.20 throughout today's session after increasing from 90.90 to post 91.26 as intra-day high in the Asian session. During the European morning, USD/JPY has been trading in a narrow range between 91.00 and 91.20, combining previous levels.

Currently, pair is trading around 0.30% above today's opening price action at 90.88 to the actual 91.15.

On the upside, next resistance levels lie at 91.41/61 (Sept 10 and 9 lows), and above here, 91.80/95 (Jul 8, Sept 3 low) and 92.25 (Sept 10 high). On the downside, support levels lie at 90.60/75, and below there, 90.20 (Sept 11, 14 low) and 90.00 psychological level.

Analyst at Swiss e Trade, comments: “On a solid recovery move in Asian and early European trading, the dollar is now at 91.10. We expect this recovery move to continue in today’s hours, leading to highs around 91.90.”

The analyst team expects a lower pair: “The dollar versus the yen is still stuck among 23.6% and 38.2% correction; where trading is gradually being limited, as shown on the chart above. We hold onto our morning expectations, waiting for the pair to touch 91.40 and then returning to continue its short-term downside move, where its primary targets are around 89.50. The possibility of achieving an expected downside will prevail if trading remains below level 92.00.”