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16 Dec 2014
USD/JPY has sold off its 2 month uptrend – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes that USD/JPY has sold off to nearby support at 117.39/20, the 2 month uptrend and low from the 27th November.
Key Quotes
“We would allow for this to hold the initial test, but the rebound is indicated to terminate circa 119.60/65 and we should then see the market come under pressure. It has recently failed to sustain the break of the 121.40 December 2005 high, the daily RSI has diverged and overhead lies its 14 year downtrend at 122.70.”
“This 122.50/123.40 band represents a major upside objective for us. Below 117.20 we target the 55 day ma at 113.49.”
“Should the market break through 123.40 (not favoured) we have nothing until the 124.14 2007 high.”
Key Quotes
“We would allow for this to hold the initial test, but the rebound is indicated to terminate circa 119.60/65 and we should then see the market come under pressure. It has recently failed to sustain the break of the 121.40 December 2005 high, the daily RSI has diverged and overhead lies its 14 year downtrend at 122.70.”
“This 122.50/123.40 band represents a major upside objective for us. Below 117.20 we target the 55 day ma at 113.49.”
“Should the market break through 123.40 (not favoured) we have nothing until the 124.14 2007 high.”