3 Feb 2014
Flash: USD/JPY near term risk is still on the down side - Commerzbank
FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that although USD/JPY broadly sidelined all week it does continue to weigh on the downside.
Key Quotes
“The market is starting to show signs of stabilisation just ahead of the 101.54 June high, but will need to do some more work to negate the downside bias.”
“The market recently executed a ‘return to point of break down’ from a previous support line. This type of price action is viewed as negative. While capped by 103.70, the near term risk remains for losses to 101.00 and possibly 100.00, the 50% and the 61.8% retracement of the move up from October.”
“Rallies will find additional resistance at 103.58 (previous support line) and the 20 day ma at 103.61.”
Key Quotes
“The market is starting to show signs of stabilisation just ahead of the 101.54 June high, but will need to do some more work to negate the downside bias.”
“The market recently executed a ‘return to point of break down’ from a previous support line. This type of price action is viewed as negative. While capped by 103.70, the near term risk remains for losses to 101.00 and possibly 100.00, the 50% and the 61.8% retracement of the move up from October.”
“Rallies will find additional resistance at 103.58 (previous support line) and the 20 day ma at 103.61.”