12 Jan 2015
USD/JPY downside revealed; 113.80 retracement on the cards?
FXStreet (Guatemala) - USD/JPY is currently trading at with a high of 118.44 and a low of 118.12 and currently down 0.20%.
USD/JPY bears have followed through with intent as the major opens in Tokyo dropping deeper into the short term bearish trend that took out the 119 handle's support at the end of last week, setting its sights for December low of 115.56.
Valeria Bednarik, chief analyst at FXStreet, noted the recent fundamentals weighing on the pair, "Local election in the prefecture of Saga in Japan resulted in an overwhelming victory from Yoshinori Yamaguchi, and opposition candidate. This means PM Abe may no t be able to enact all of his reforms, which may result in further yen strength across the board.
Technically, 118 is the first hurdle for the bears with 118.05 supporting the pair on the 5th Jan in Asia, with 117.50 and 117.20 next support. A break of the 116 handle risks the initial medium term aforementioned target price. Further than that, Karen Jones, chief analyst at Commerzbank explained, "We note that the daily Elliot wave count is suggesting that we are likely to see a
retracement towards 113.80/111.40".
USD/JPY bears have followed through with intent as the major opens in Tokyo dropping deeper into the short term bearish trend that took out the 119 handle's support at the end of last week, setting its sights for December low of 115.56.
Valeria Bednarik, chief analyst at FXStreet, noted the recent fundamentals weighing on the pair, "Local election in the prefecture of Saga in Japan resulted in an overwhelming victory from Yoshinori Yamaguchi, and opposition candidate. This means PM Abe may no t be able to enact all of his reforms, which may result in further yen strength across the board.
Technically, 118 is the first hurdle for the bears with 118.05 supporting the pair on the 5th Jan in Asia, with 117.50 and 117.20 next support. A break of the 116 handle risks the initial medium term aforementioned target price. Further than that, Karen Jones, chief analyst at Commerzbank explained, "We note that the daily Elliot wave count is suggesting that we are likely to see a
retracement towards 113.80/111.40".