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USD/JPY: Mid-range but with growing upside potential – Westpac
Despite more positive long term momentum, daily indicators appear toppish as USD/JPY re-enters 2017’s central range (112-115), according to Tim Riddell, Research Analyst at Westpac.
Key Quotes
“Dips ought to hold the 111.85-112.15 area to avoid an interim unwind of recent gains. If the area holds, an early push to retest 114.30-50 should develop.”
“Weekly
- Potential for a full retest of mid-’17’s 114.30-50 highs is supported by the upwards swing in momentum. At present price action remains broadly corrective
- In order to avoid a protracted consolidation, USD/JPY would need a dynamic move above 114.50. If it were to occur, it could signal an early push to 118.65.”
“Monthly
- Although monthly momentum remains at decidedly neutral levels, the subtle turn higher into 4Q raises the potential for further USD gains
- Despite risk of a prolonged consolidation, the notably positive outside range for the month suggests that the there could be an early return to the underlying uptrend”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
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