This week we present one technical view: USD/JPY – above 119.97 to commence an advance to 126.25.
USD/JPY is forming a multi-week continuation pattern following the last up-leg from the mid-October 2014 low at 105.20. The stochastic indicator has recently crossed higher to signal the upswing off the marginally higher high at 115.85. This should extend towards key resistance at 119.97, the 9 January lower high and approximate upper continuation trendline.
The longer term trend and structure remain firmly positive and an eventual break above 119.97 would resume the advance. The immediate target would be 121.86, the current cycle high, above which would pivot a challenge on the November 2007 peak at 124.14. Through here then opens the November 2002 lower ceiling at 125.73. However, the continuation structure projects gains beyond here to the 126.25 region.
The115.49 to 115.85 region should continue to underpin the congestive phase. This area houses the 38.2% retracement level of the 105.20 to 121.86 rise and the 16 December and 16 January 2015 lows. Below here would risk a temporary setback towards the 50% retracement level at 113.53.
USD/JPY – above 119.97 to commence an advance to 126.25
- Strategy summary – above 119.97 to commence an advance to 124.14 and then 126.25. Support comes in at 115.57/49.
USD/JPY is forming a multi-week continuation pattern following the last up-leg from the mid-October 2014 low at 105.20. The stochastic indicator has recently crossed higher to signal the upswing off the marginally higher high at 115.85. This should extend towards key resistance at 119.97, the 9 January lower high and approximate upper continuation trendline.
The longer term trend and structure remain firmly positive and an eventual break above 119.97 would resume the advance. The immediate target would be 121.86, the current cycle high, above which would pivot a challenge on the November 2007 peak at 124.14. Through here then opens the November 2002 lower ceiling at 125.73. However, the continuation structure projects gains beyond here to the 126.25 region.
The115.49 to 115.85 region should continue to underpin the congestive phase. This area houses the 38.2% retracement level of the 105.20 to 121.86 rise and the 16 December and 16 January 2015 lows. Below here would risk a temporary setback towards the 50% retracement level at 113.53.
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.