FX.co ★ USD/JPY: Upside prevails

Overview:
USDJPY has consolidated after hitting the high of 90.20. The pair is expected to remain upside as far as it is traded above the level of 89.35. Above 89.35 the uptrend of pair remains intact with target of 91, the minor resistance is expected at 90.2 which is the high of the previous week and the second resistance, at 90.65. The bear will come to power with crossing of the price below 89.35 and bearish trend will accelerate after crossing the support of 88.9, the downward movement toward 88 cannot be ruled out. JPY is likely to continue under performing vs. most majors leading up to the July Upper House election.
Preference:
Buy above 89.35 with targets at 90.2 and 90.65 in extension.
Resistance levels:
R1 - 90.2
R2 - 90.65
R3 - 90.85
Alternative scenario:
Sell below 89.35. Below 89.35 look for further downside with 88.9 and 88.3 as targets.
Support levels:
S1 - 88.9
S2 - 88.3
S3 - 88
Technical comment:
A support base at 89.35 has formed and has allowed for a temporary stabilization.