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23 Feb 2015
USD/JPY to edge higher towards 126.25 – Danske
FXStreet (Barcelona) - Thomas Harr, Global Head of FICC Research at Danske Bank shares the technical outlook for USD/JPY, expecting the pair to edge higher towards 126.25 and then 132.20 longerterm.
Key Quotes
“USD/JPY continues to build for significantly higher levels. The last upswing from the 2 February higher low at 116.64 reached just shy of the 23 December lower ceiling at 120.82.”
“An engulfing bar then triggered a corrective dip that appears to have rejected 118.11, the 61.8% retracement of the 116.64-120.48 advance.”
“Breach of the 17 February high at 119.42 would firm the immediate tone further for a re-test of the key 120.48- 120.82 ceiling.”
“The longer-term trend and structure remain firmly positive, and a break above 120.48-82 would confirm the start of the next major up leg.”
“MACD supports/confirms the latest upswing, and a break above 120.82 would open up the 8 December multi-year high at 121.86 first. A breach of this level would then pivot a challenge of the November 2007 peak at 124.14.”
“A move above this level would then open up the November 2002 lower ceiling at 125.73. The continuation structure, however, projects gains beyond here to the 126.25 region. An equality target/objective then rests at 132.20.”
“Immediate supports lie at 118.11/116.64. A loss of the major base at 115.85/57 would disrupt the longer-term movement.”
Key Quotes
“USD/JPY continues to build for significantly higher levels. The last upswing from the 2 February higher low at 116.64 reached just shy of the 23 December lower ceiling at 120.82.”
“An engulfing bar then triggered a corrective dip that appears to have rejected 118.11, the 61.8% retracement of the 116.64-120.48 advance.”
“Breach of the 17 February high at 119.42 would firm the immediate tone further for a re-test of the key 120.48- 120.82 ceiling.”
“The longer-term trend and structure remain firmly positive, and a break above 120.48-82 would confirm the start of the next major up leg.”
“MACD supports/confirms the latest upswing, and a break above 120.82 would open up the 8 December multi-year high at 121.86 first. A breach of this level would then pivot a challenge of the November 2007 peak at 124.14.”
“A move above this level would then open up the November 2002 lower ceiling at 125.73. The continuation structure, however, projects gains beyond here to the 126.25 region. An equality target/objective then rests at 132.20.”
“Immediate supports lie at 118.11/116.64. A loss of the major base at 115.85/57 would disrupt the longer-term movement.”