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17 Jan 2016
USD/JPY: en-route for 116.10 - FXStreet
FXStreet (Guatemala) - Valeria Bedrnarik, chief analyst at FXStreet explained that the American dollar gave up all of its weekly gains against the greenback on Friday, following worse-than-expected data, as US Retail Sales came out negative for December, while Industrial Production during the same month, shrunk by 0.4%, doubling expectations of a 0.2% decline.
Key Quotes:
"With the Japanese yen on demand amid ongoing risk sentiment, the USD/JPY needed little to fall, and on Friday, fell down to 116.50, its lowest since late August. Having closed the week a few pips below the 117.00 level, the daily chart shows that the technical indicators have resumed their declines near oversold territory after a limited upward corrective move, while the price remains well below the 100 and 200 SMAs."
"n the 4 hours chart, the technical indicators present strong bearish slopes well below their mid-lines, while the 100 and 200 SMA have accelerated their declines far above the current level, all of which supports some further declines towards 116.10 in the short term. A break below this last should fuel the decline by triggering panic selling, exposing the 115.00 price zone.
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Key Quotes:
"With the Japanese yen on demand amid ongoing risk sentiment, the USD/JPY needed little to fall, and on Friday, fell down to 116.50, its lowest since late August. Having closed the week a few pips below the 117.00 level, the daily chart shows that the technical indicators have resumed their declines near oversold territory after a limited upward corrective move, while the price remains well below the 100 and 200 SMAs."
"n the 4 hours chart, the technical indicators present strong bearish slopes well below their mid-lines, while the 100 and 200 SMA have accelerated their declines far above the current level, all of which supports some further declines towards 116.10 in the short term. A break below this last should fuel the decline by triggering panic selling, exposing the 115.00 price zone.
"