USD/JPY: Retracement developing before uptrend resumes - Westpac
|Tim Riddell, Resarch Analyst at Westpac, is assessing the price structures in the AUD/USD for 1Q 2017.
- DAILY
- After failing at the 115.50-80 resistance area, the sharp slide through previous 111.50-75 support has triggered deep pullbacks towards 108.75-109.40 area
- However, such moves are still consistent with corrections off Dec’s 118.65 high. Daily momentum is low. A turn/divergence is needed to confirm a near term base
- WEEKLY
- Weekly momentum has slipped through neutral levels and remains negative. USD pullbacks could therefore continue, but are again considered to be corrective
- The 108.75-109.40 area should provide a solid base for another strong uptrend through 118. A close above 112.50 could trigger a turn in momentum.
- MONTHLY
- After current corrections, the uptrend from 2016’s lows could see a full retest of the 125-126 highs (and could even extend towards 135-140 area)
- Monthly momentum remains positive. Although momentum across time frames is not aligned, a strong uptrend is expected to resume
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