1 Dec 2014
USD/JPY en-route to test Nov 20 high ahead of 120.00 target
FXStreet (Bali) - USD/JPY is flying higher in early Asia, en route to test recent bull trend high at 118.96 ahead of what has been perceived as the ultimate 2014 target at 120.00.
Following the corrective move down towards 117.25, and after tripping a few weak stops in the process, the leveraged community has, once again, jumped on the JPY sale trade bandwagon in earnest, producing a vigorous 1.5 cent rally since finding a bottom at 117.24 last Nov 27.
Technically, Jim Langlands, Founder at FXCharts, notes: "Option related sellers would again protect 119.00, but beyond there would trigger stops and would head on towards 120.00, which again will see heavy option related sellers and will need to overcome major Fibo resistance at 120.05 (61.8% of 147.68/75.56) in order to make further gains. On the downside, the initial support is seen at 118.50 and again at 118.30 (both minor). Below there would head towards 118.00, where the converging 100/200 HMAs will provide support."
Following the corrective move down towards 117.25, and after tripping a few weak stops in the process, the leveraged community has, once again, jumped on the JPY sale trade bandwagon in earnest, producing a vigorous 1.5 cent rally since finding a bottom at 117.24 last Nov 27.
Technically, Jim Langlands, Founder at FXCharts, notes: "Option related sellers would again protect 119.00, but beyond there would trigger stops and would head on towards 120.00, which again will see heavy option related sellers and will need to overcome major Fibo resistance at 120.05 (61.8% of 147.68/75.56) in order to make further gains. On the downside, the initial support is seen at 118.50 and again at 118.30 (both minor). Below there would head towards 118.00, where the converging 100/200 HMAs will provide support."