7 May 2014
USD/JPY near lows below LT trendline
FXStreet (Bali) - USD/JPY is presently trading at 101.65 after failing to regain a key trendline coming off late Feb 2012 lows, first broken during last European trade.
Price action in USD/JPY since throughout 2014 continues to suggest that the market holds a stronger interest to sell the pair, as seen by the multi-topside failures to regain the 102.70-103.00 key supply area. Additionally, the reasons to turn bearish on the pair seem to be mounting, with the break down of a long term uptrend line, follwing downward pressure on US yields, broad-based USD weakness despite an encouraging US NFP last Friday, all combined with a BoJ not willing to commit on further easing for now.
USD/JPY technicals
Valeria Bednarik, Chief Analyst at FXStreet, notes: "The USD/JPY finally capitulated, having traded as low as 101.49 and holding around the low. The hourly chart shows 100 and 200 SMAs gaining bearish slope well above current price, while indicators turn south in negative territory after a limited upward correction, supporting a bearish continuation in the short term. In the 4 hours chart momentum continues to head lower in negative territory supporting the shorter term view: price may extend down to 101.20, March 2014 monthly low, while once below the pair will likely accelerate down towards 100.70 area this year lows."
Price action in USD/JPY since throughout 2014 continues to suggest that the market holds a stronger interest to sell the pair, as seen by the multi-topside failures to regain the 102.70-103.00 key supply area. Additionally, the reasons to turn bearish on the pair seem to be mounting, with the break down of a long term uptrend line, follwing downward pressure on US yields, broad-based USD weakness despite an encouraging US NFP last Friday, all combined with a BoJ not willing to commit on further easing for now.
USD/JPY technicals
Valeria Bednarik, Chief Analyst at FXStreet, notes: "The USD/JPY finally capitulated, having traded as low as 101.49 and holding around the low. The hourly chart shows 100 and 200 SMAs gaining bearish slope well above current price, while indicators turn south in negative territory after a limited upward correction, supporting a bearish continuation in the short term. In the 4 hours chart momentum continues to head lower in negative territory supporting the shorter term view: price may extend down to 101.20, March 2014 monthly low, while once below the pair will likely accelerate down towards 100.70 area this year lows."