USD/JPY: Long term base already formed - Westpac
|Tim Riddell, Research Analyst at Westpac, suggests that daily momentum shows signs of peaking as USD/JPY approaches 50% of its range of the past 18 months, however, indicators are not turning, yet.
Key Quotes
“USD gains off 104.55 may be completing a dynamic series of gains as it nears both 111.60 (50%) and declining resistance(112.15-25), but the trend could still extend. Dips ought to hold above 110.00 if the upside potential is to develop.”
“Weekly
- Weekly momentum is approaching previous resistance, but remains very positive. This is indicative of a larger uptrend (even if an interim correction forms)
- The style of gains from 104.55 are, as noted, decidedly dynamic. This is a sign of a strong uptrend which could retest and redefine 114.75-00 resistance”
“Monthly
- Monthly momentum has now turned distinctly more positive over the past two months. If sustained, this would indicate a more USD positive profile through 2018
- Although current focus may be a retesting/redefining of the 114.75-00 resistance area, potential is building for a more dynamic move into the low 120’s.”
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