USD/JPY: bulls in charge, targeting 103 handle and key resistance 103.55

USD/JPY is bid on the daily sticks, recovering from the lows of 98.91 post Brexit and again from 99.98 last week.

USD/JPY has been better bid from 100.55 overnight, breaking through the 1hr 20, 55 and 100 sma's, and currently testing 102.80/00 resistance with a high of 102.89 so far. Meanwhile, Nikkei reported that the Japanese government will slash forecasts for 2016 by 0.9ppts to 2.2% and this adds fuel to the bulls fire as markets expect stimulus to come from the BoJ at some stage. 

USD/JPY levels

USD/JPY bulls are targeting a break of the 103 handle for a score towards the 103.55/103.90 being the 16th June low and 61.8% retracements of the Brexit sell off. Breaks to the upside would otherwise continue to 105.55 (May low) and the 106.87 24th January high. However, failures above the 103 handle could encourage a resumption of the downside to below the 55 sma on the 4hr chart located at 101.78. "We look for a retest of the 99.00 recent low Below 99.00 lies the 61.8% retracement of the move 2011 to 2015 at 94.75" explained analysts at Commerzbank.