Forex: USD/JPY goes below 96.00 after peaking at 97.19

FXstreet.com (Barcelona) - The USD/JPY resumed its rally and reached as high as 97.19 during the Asian session, but eventually retraced its gains back to the opening price around 96.30/40. Just recently, the market dropped briefly to 95.86 low only to bounce back to a flat daily candlestick.

As expected, the 10-year JGB saw an increased demand that took it to record low yields during today’s session. Currently, each bond pays 0.44% on the secondary market. The preliminary release of Japan’s leading economic index in February rose from 95.0 to 97.5, while the coincident index came in higher from 91.6 to 92.1.

“The Elliott wave count on the 60 minute chart is suggesting we see a retracement into the 95.50/94.90 band ahead of the next leg up”, wrote Commerzbank analyst Karen Jones, pointing to key support at 92.09/20 and Longer term target at 99.70 (50% retracement of the 2007 to 2011 drop) and then 101.27/67 (the 1999 and 2005 lows).