USD/JPY is now higher for the day as it takes out buy stops above 96.45 and 96.50.
Rallying stocks have helped the pair turnaround and the daily chart is flashing a doji, which is a potential turnaround following 4 days of losses. I wrote about the oversold conditions in USD/JPY yesterday and the pair bounced in Asia before heading lower. I continue to see the risk of a rebound, especially given the sharp turnaround today in USD/JPY even though the buck has generally been battered elsewhere.
Continue to look for a re-test of 97.50 ahead of further declines.
USD/JPY daily chart
Offers at 96.65/70 and 96.90/00 — medium size.
