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10 Dec 2014
USD/JPY looking increasingly on a full on reversal
FXStreet (Guatemala) - USD/JPY is trading at 118.97, down -0.53% on the day, having posted a daily high at 119.93 and low at 118.68.
The descending resistance line contains USD/JPY and failures of 119.80 overnight met heavy supply before the major was able to drift back onto the handle. The pair has been building up lower lows and it is looking increasingly bearish and turning into a full on reversal, which brings the November highs as the next target for the bears
We are light on data in the US with only the monthly budget statement for November and the Fed speaking has been done so we now await the actual FOMC for further direction in the greenback.
On further downside moves, Karen Jones, chief analyst at Commerzbank explained that as the Imoku 1 support has under pinned the chart since October 22 and was eroded, the market and the 20 day moving average at 118.39 is exposed. “We look for this to be eroded for losses to 117.25/20 then the 116.11, 11th November high and the 116.28 uptrend. Failure here will target the 55 day ma at 112.87”.
The descending resistance line contains USD/JPY and failures of 119.80 overnight met heavy supply before the major was able to drift back onto the handle. The pair has been building up lower lows and it is looking increasingly bearish and turning into a full on reversal, which brings the November highs as the next target for the bears
We are light on data in the US with only the monthly budget statement for November and the Fed speaking has been done so we now await the actual FOMC for further direction in the greenback.
On further downside moves, Karen Jones, chief analyst at Commerzbank explained that as the Imoku 1 support has under pinned the chart since October 22 and was eroded, the market and the 20 day moving average at 118.39 is exposed. “We look for this to be eroded for losses to 117.25/20 then the 116.11, 11th November high and the 116.28 uptrend. Failure here will target the 55 day ma at 112.87”.