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17 Mar 2015
USD/JPY: Bets are on the long side
FXStreet (Guatemala) - USD/JPY is currently trading at 121.34 with a high of 121.52 and a low of 121.10.
USD/JPY is grinding to a halt around the 121.20 mark that comes as both resistance and support of March's up move. The pair is in consolidation requiring fresh impetus to take it to the current threshold at 122.00. Beyond here, there is the 15 year downtrend and congestion. The market is weighted on the bullish side in the pair as we price in the divergence between the banks and with the FOMC coming up this week, the best are placed that the forward guidance will be changed leaving the doors open for a possible hike in June from the Fed.
Technically, Dmytro Bondar, technical analyst at RBS explained that they remain long USD/JPY after the resumption of the up-trend towards 124.00 and above targets and note that our first resistance level of 122.00 has already been tested, from where there may be a correction.
"We moved our stop higher to the 115.80 level, which was not touched last month. The near-term may see a correction back to the 118.70 pivot point, which is expected to hold, offering levels for those who missed the move. We hold the view for 122.00 and 124.00 bull flag targets to be tested. The latter coincides with my long-term target. After that, more upside towards 130.00 and 135.00 cannot be excluded."
USD/JPY is grinding to a halt around the 121.20 mark that comes as both resistance and support of March's up move. The pair is in consolidation requiring fresh impetus to take it to the current threshold at 122.00. Beyond here, there is the 15 year downtrend and congestion. The market is weighted on the bullish side in the pair as we price in the divergence between the banks and with the FOMC coming up this week, the best are placed that the forward guidance will be changed leaving the doors open for a possible hike in June from the Fed.
Technically, Dmytro Bondar, technical analyst at RBS explained that they remain long USD/JPY after the resumption of the up-trend towards 124.00 and above targets and note that our first resistance level of 122.00 has already been tested, from where there may be a correction.
"We moved our stop higher to the 115.80 level, which was not touched last month. The near-term may see a correction back to the 118.70 pivot point, which is expected to hold, offering levels for those who missed the move. We hold the view for 122.00 and 124.00 bull flag targets to be tested. The latter coincides with my long-term target. After that, more upside towards 130.00 and 135.00 cannot be excluded."