23 Jan 2014
USD/JPY extends below 104.00
FXstreet.com (Edinburgh) - The USD/JPY is extending its intraday decline on Thursday, as the greenback continues to weaken amidst downbeat data in the US economy and renewed JPY strength.
USD/JPY still bullish
Despite today’s correction lower, most analysts rule out any change in the main bullish perspective, although today’s decline should be followed carefully. In the opinion of strategists at the Swiss bank UBS, “While today’s aggressive selloff in USDJPY doesn’t mark an outright bearish reversal, it certainly suggests that the pair is entering into an extended correction. Our main concern is that the current weakness has not only failed below the previous high of 105.48 on Jan 2, it has broken support as at Monday’s 103.85 low, suggesting a pattern of lower highs and lower lows”.
USD/JPY relevant levels
At the moment the pair is losing 0.75% at 103.71 with the immediate support at 103.00 (low Jan.14) ahead of 102.85 (2014 low Jan.13) and then 102.56 (low Dec.18). On the upside, a break above 104.15 (MA200h) would expose 104.55 (MA21d) and finally 104.84 (high Jan.23).
USD/JPY still bullish
Despite today’s correction lower, most analysts rule out any change in the main bullish perspective, although today’s decline should be followed carefully. In the opinion of strategists at the Swiss bank UBS, “While today’s aggressive selloff in USDJPY doesn’t mark an outright bearish reversal, it certainly suggests that the pair is entering into an extended correction. Our main concern is that the current weakness has not only failed below the previous high of 105.48 on Jan 2, it has broken support as at Monday’s 103.85 low, suggesting a pattern of lower highs and lower lows”.
USD/JPY relevant levels
At the moment the pair is losing 0.75% at 103.71 with the immediate support at 103.00 (low Jan.14) ahead of 102.85 (2014 low Jan.13) and then 102.56 (low Dec.18). On the upside, a break above 104.15 (MA200h) would expose 104.55 (MA21d) and finally 104.84 (high Jan.23).