16 Feb 2016
USD/JPY bulls in control but driving miss daisy
USD/JPY is currently in a recovery from the recent lows of 110.97 and is en-route towards the 115 handle with a stumble so far at the mid point of the 114 handle, being a congested area back in October. The comeback comes in light of a slightly better handle on the global markets concerns and the root of issues while investors are starting to become impatient sitting on idle capital and are taking a risk on their money.
However, we are far from out of the woods yet and while below the 116 handle, risks remain anchored to the downside. Also, the Yen is out of favour on recent economic data, specifically within the 2015 Q4GDP details that could be another reason that the BoJ needs to be concerned about their inflation target.
While the price is rising steadily, it feels a little like driving miss daily, and until we can breach 115.50/00, the risks remain to the downside and a sell on rallies.
USD/JPY levels
Technically, we need to focus on the near term price action with the 20 sma on the hourly stick offering support at 114.27 currently as price moves in towards the upper half of the 114 handle. The 200 sma on the same time frame has the key level in the near term at 115.00."
In the 4 hours chart, the Momentum indicator turned slightly lower in extreme overbought territory, while the RSI heads higher around 56, supporting some further gains on a break above the mentioned daily high," explained Valeria Bednarik, chief analyst at FXStreet.
However, we are far from out of the woods yet and while below the 116 handle, risks remain anchored to the downside. Also, the Yen is out of favour on recent economic data, specifically within the 2015 Q4GDP details that could be another reason that the BoJ needs to be concerned about their inflation target.
While the price is rising steadily, it feels a little like driving miss daily, and until we can breach 115.50/00, the risks remain to the downside and a sell on rallies.
USD/JPY levels
Technically, we need to focus on the near term price action with the 20 sma on the hourly stick offering support at 114.27 currently as price moves in towards the upper half of the 114 handle. The 200 sma on the same time frame has the key level in the near term at 115.00."
In the 4 hours chart, the Momentum indicator turned slightly lower in extreme overbought territory, while the RSI heads higher around 56, supporting some further gains on a break above the mentioned daily high," explained Valeria Bednarik, chief analyst at FXStreet.