USD/JPY: a complete turn-around on 103 handle

USD/JPY is a double top at the 104 handle and has been better offered to 103.20, but is starting to catch some demand again towards the mid point of the handle again.

USD/JPY is back under pressure again on the back of Stocks hitting new lows. The yen had been suffering on crude oil, but we have seen a turn-around of late in the last couple of sessions after yesterday's rally to the $5 handle and has supported the yen. 

Lee Hardman, analysts at Bank of Tokyo Mitsubishi explained that "Recent developments pose upside risks to our year end forecasts for oil related currencies such as the rouble and more modest downside risks for the yen. If the price of oil continues to extend its rebound into year-end, our forecast for USD/JPY to fall below the 100.00-level maybe delayed into next year."  However, we have had a turn of events in the oil price and fundamentals. The price action is all being driven on global output expectations. Just as markets got the news that Russia will join in on the accord to curb production, producing nations such as Libya, Iran and Nigeria have all said they aim to pump additional volumes that could total 700,000 barrels of oil a day over August levels. This all leaves doubts as to whether the Organization of the Petroleum Exporting Countries (OPEC) can really achieve production cuts that had been agreed last month to end a crude glut that has decreased the price of oil and petroleum related products for the last two years. 

USD/JPY levels

Current price is 103.39, with resistance ahead at 103.40 (Daily Classic PP), 103.57 (Daily 100 SMA), 103.57 (Hourly 100 SMA), 103.60 (Daily Open) and 103.65 (Hourly 20 EMA).Next support to the downside can be found at 103.17 (Daily Low), 103.00 (Daily Classic S1), 102.90 (Weekly Low), 102.81 (Yesterday's Low) and 102.77 (Weekly Classic PP).