1 Dec 2014
USD/JPY risks weighed up on 118 handle
FXStreet (Guatemala) - USD/JPY is trading at 118.31, down -0.29% on the day, having posted a daily high at 119.15 and low at 117.87.
USD/JPY is maintaining the 118 handle again but the counter trading in the greenback has come with a great deal of volume and has effectively offset positions back to a neutral stance which allows for other fundamentals to dictate the major unit once again. Support currently comes
in with the Imoku 1 at 117.92 ad holding the pair currently on dips.
This week comes with the nonfarm payrolls data and mid month we will have the final FOMC ahead of year end. Familiar ranges take hold of the pair while the Japanese snap elections are the major showdown for the pair, and until then, overhead lies the 1.618 Fibonacci extension at 119.07 as noted by Karen Jones, chief analyst at FXStreet. If the pair manages to break up on the back of, say, an Abe victory, or even before on reemergence of dollar demand, above 119.07 lies the January and October 2006 highs at 119.40/88 and also the psychological 120.00 region, as pointed out by Jones. “A move to here cannot be ruled out”.
However, technically, it is also pointed out by Jones that the daily RSI has not confirmed the recent high and this suggests caution. “Support is found 117.20/92 and only below here will trigger losses to 116.11, 11th November high and the 114.34 uptrend”.
USD/JPY is maintaining the 118 handle again but the counter trading in the greenback has come with a great deal of volume and has effectively offset positions back to a neutral stance which allows for other fundamentals to dictate the major unit once again. Support currently comes
in with the Imoku 1 at 117.92 ad holding the pair currently on dips.
This week comes with the nonfarm payrolls data and mid month we will have the final FOMC ahead of year end. Familiar ranges take hold of the pair while the Japanese snap elections are the major showdown for the pair, and until then, overhead lies the 1.618 Fibonacci extension at 119.07 as noted by Karen Jones, chief analyst at FXStreet. If the pair manages to break up on the back of, say, an Abe victory, or even before on reemergence of dollar demand, above 119.07 lies the January and October 2006 highs at 119.40/88 and also the psychological 120.00 region, as pointed out by Jones. “A move to here cannot be ruled out”.
However, technically, it is also pointed out by Jones that the daily RSI has not confirmed the recent high and this suggests caution. “Support is found 117.20/92 and only below here will trigger losses to 116.11, 11th November high and the 114.34 uptrend”.