3 Jan 2014
Flash: USD/JPY technical outlook - TDS
FXstreet.com (London) - Strategist team at TD securities gave a run down on the technical out look for USD/JPY.
Key Quotes:
“USD/JPY had seen nine consecutive weeks of net gains prior to the current one so a correction of some sort was perhaps due”.
“Price action Thursday signaled a peak, confirmed by losses today, albeit with developments occurring in thin and illiquid trading (Japan
remains closed)”.
“The risk of a deeper pullback cannot be excluded; the USD rally looks over extended and the market has not corrected the bare minimum of the 97/105 rally seen through late 2013”.
“Trend channel support highlighted above is not especially strong but still seems to be enough to halt the USD slide for now, however”.
“We think the longer-term trend remains positive, however, so we have to look for chances to buy—either on a dip nearer 101/102 or on an extension to new highs above 105.50”.
Key Quotes:
“USD/JPY had seen nine consecutive weeks of net gains prior to the current one so a correction of some sort was perhaps due”.
“Price action Thursday signaled a peak, confirmed by losses today, albeit with developments occurring in thin and illiquid trading (Japan
remains closed)”.
“The risk of a deeper pullback cannot be excluded; the USD rally looks over extended and the market has not corrected the bare minimum of the 97/105 rally seen through late 2013”.
“Trend channel support highlighted above is not especially strong but still seems to be enough to halt the USD slide for now, however”.
“We think the longer-term trend remains positive, however, so we have to look for chances to buy—either on a dip nearer 101/102 or on an extension to new highs above 105.50”.