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5 Aug 2013
USD/JPY eyes base of cloud
FXstreet.com (Barcelona) - USD/JPY continues to be offered and is at this time in writing trades towards 98.35.
Shaun Osborne, Chief FX Strategist at TD Securities said that the USD/JPY’s modest recovery from cloud support zone last week stalled against key trend resistance at 100.13. “Short-term price signals suggest a strong rejection of the 100 area which may refocus attention on supports around the 98 area”. He thinks the broader risk in USD/JPY is geared towards more USD losses in the next few weeks. “Medium-term price signals suggested a peak/reversal formed in early July around the 101.53 peak (weekly bear reversal against a retest of the base of the major bull trend channel). Seasonal patterns turn JPY-supportive August through November and are especially strong historically in August (more consistent and more powerful moves in the last 20 years)”.
USD/JPY sidelined
Karen Jones, Head of FICC Technical Analysis at Commerzbank said the USD/JPY starts this week pretty much sidelined between the 101.60 Fibonacci resistance and 97.55 the base of the cloud. “Overhead resistance is reinforced by the 100.42 resistance line. We remain biased to a slide back to the base of the cloud. Failure at the base of the cloud will leave the market under pressure and likely to slide back to 96.75/95.40 en route to the 93.75 recent low. It is vulnerable to further losses”.
Shaun Osborne, Chief FX Strategist at TD Securities said that the USD/JPY’s modest recovery from cloud support zone last week stalled against key trend resistance at 100.13. “Short-term price signals suggest a strong rejection of the 100 area which may refocus attention on supports around the 98 area”. He thinks the broader risk in USD/JPY is geared towards more USD losses in the next few weeks. “Medium-term price signals suggested a peak/reversal formed in early July around the 101.53 peak (weekly bear reversal against a retest of the base of the major bull trend channel). Seasonal patterns turn JPY-supportive August through November and are especially strong historically in August (more consistent and more powerful moves in the last 20 years)”.
USD/JPY sidelined
Karen Jones, Head of FICC Technical Analysis at Commerzbank said the USD/JPY starts this week pretty much sidelined between the 101.60 Fibonacci resistance and 97.55 the base of the cloud. “Overhead resistance is reinforced by the 100.42 resistance line. We remain biased to a slide back to the base of the cloud. Failure at the base of the cloud will leave the market under pressure and likely to slide back to 96.75/95.40 en route to the 93.75 recent low. It is vulnerable to further losses”.