Forex: USD/JPY holds the 94.00 level

The USD/JPY taken a step back today after recording substantial gains Monday. Whispers of a second round of monetary easing have clearly affected the pair, forcing massive pressure on the recently beleaguered yen. Tuesday is a differently story entirely however, as the pair now trades negatively at 94.02/03, clinging to the 94.00 level during European trading.

According to Drvenica, “The bulls returned to play following the recovery rally from the 92.17 base accelerated through the 94.00 barrier that signaled a bullish continuation of larger uptrend from 77.00 zone. This brings our initial target at 94.97 (May 2010 high) in near-term focus, a break of which is needed to confirm the medium-term base and signal stronger recovery since the 2007/2011 downtrend.”

After falling back into negative territory to the tune of a -0.26% drop, Slobodan Drvenica, an analyst at Windsor Brokers Ltd., suggests the cross will be fortified by supports at 93.85, down to 93.58, and finally 93.31. On the upside, the USD/JPY will encounter means of calculated resistance at 94.35, then 94.45, and finally the 95.00 handle.