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3 Apr 2015
USD/JPY: eyeing a catalyst to break from the 118-121 range – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, gives the key technical levels for USD/JPY, noting that the pair requires a catalyst to push it out of its range.
Key Quotes
“The USD/JPY pair has been consolidating in between 118.00 and 121.00 since early February, unable to set a clear directional strength.”
“One of the reasons the pair has been contained, was the end of Japanese fiscal year last March 31st that implies some repatriation alongside with profit taking and positions adjustments for the books. But with that out of the way, this month's payrolls could be far more entertained for the USD/JPY.”
“Technically, the daily chart shows that the price has been pressuring the 100 DMA since mid March, whilst the technical indicators maintain a strong downward momentum below their mid-lines, favoring a downward continuation.”
“Nevertheless, some follow through below the mentioned 100 DMA, currently around 119.20, should be the first announcement of a downward continuation towards the base of the range in the 118.00/20 region. Large stops should be gathered below, and if broken, the probable target for the month comes at 115.84, January 15th daily low.”
“For the last two weeks, the pair has advanced up to 120.35, but has been unable to sustain gain beyond the 120.00 mark, which means a daily close above the mentioned recent high is required to confirm a more constructive outlook, that should lead to an advance up to 122.02, this year high.”
Key Quotes
“The USD/JPY pair has been consolidating in between 118.00 and 121.00 since early February, unable to set a clear directional strength.”
“One of the reasons the pair has been contained, was the end of Japanese fiscal year last March 31st that implies some repatriation alongside with profit taking and positions adjustments for the books. But with that out of the way, this month's payrolls could be far more entertained for the USD/JPY.”
“Technically, the daily chart shows that the price has been pressuring the 100 DMA since mid March, whilst the technical indicators maintain a strong downward momentum below their mid-lines, favoring a downward continuation.”
“Nevertheless, some follow through below the mentioned 100 DMA, currently around 119.20, should be the first announcement of a downward continuation towards the base of the range in the 118.00/20 region. Large stops should be gathered below, and if broken, the probable target for the month comes at 115.84, January 15th daily low.”
“For the last two weeks, the pair has advanced up to 120.35, but has been unable to sustain gain beyond the 120.00 mark, which means a daily close above the mentioned recent high is required to confirm a more constructive outlook, that should lead to an advance up to 122.02, this year high.”