Technical Analysis – USDJPY to resume upside momentum?
January 14, 2014 8:44 am
USDJPY underlying upside momentum in the long term remains bullish but in the short-term there is some consolidation of the recent strong rally that took the pair to 5-year highs.
Friday’s weak nonfarm payrolls pushed the pair to retreat to 102.84 on Monday, the lowest since December 18 and off the 5-year high of 105.43 hit on January 2nd.
On the daily chart, USDJPY has retraced 23.6% of the move from the October 2013 low of 96.53 to the January 2nd high of 105.53. The pair is currently consolidating around this level after finding support from the post-NFP drop to lows of 102.84 on Monday.
USDJPY bias remains on the upside to target 105.43 (January 2 high). The 105.43 level is the 61.8% Fibonacci retracement level of the down-leg from the June 2007 high at 124.12 to the October 2011 low at 75.55. This peak is an important resistance level and so a break above this will accelerate the move up to the key psychological level of 106.00.
Technical indicators such as the Ichimoku indicator show that Tenkan-Sen and Kijun-Sen are positively aligned, reinforcing the upside bias. Prices are currently trading above the kumo which is also a bullish signal.
Currently on the daily chart, prices are hugging the 61.8% Fib and this immediate resistance level is key for today. A daily close below this could weaken the bullish momentum. A move to the downside would push the pair to the 38.2% Fibonacci level at 102.20.
USDJPY underlying upside momentum in the long term remains bullish but in the short-term there is some consolidation of the recent strong rally that took the pair to 5-year highs.
Friday’s weak nonfarm payrolls pushed the pair to retreat to 102.84 on Monday, the lowest since December 18 and off the 5-year high of 105.43 hit on January 2nd.
On the daily chart, USDJPY has retraced 23.6% of the move from the October 2013 low of 96.53 to the January 2nd high of 105.53. The pair is currently consolidating around this level after finding support from the post-NFP drop to lows of 102.84 on Monday.
USDJPY bias remains on the upside to target 105.43 (January 2 high). The 105.43 level is the 61.8% Fibonacci retracement level of the down-leg from the June 2007 high at 124.12 to the October 2011 low at 75.55. This peak is an important resistance level and so a break above this will accelerate the move up to the key psychological level of 106.00.
Technical indicators such as the Ichimoku indicator show that Tenkan-Sen and Kijun-Sen are positively aligned, reinforcing the upside bias. Prices are currently trading above the kumo which is also a bullish signal.
Currently on the daily chart, prices are hugging the 61.8% Fib and this immediate resistance level is key for today. A daily close below this could weaken the bullish momentum. A move to the downside would push the pair to the 38.2% Fibonacci level at 102.20.
Related Posts: