10 Jun 2013
USD/JPY advances capped below 98.50
FXstreet.com (Barcelona) - The USD/JPY is edging higher in Asia trade, at one point trading as high as 98.41 before finding firm resistance and falling back to 97.96. Japan GDP figures (Q1) were released earlier in the session, coming in at 4.1% vs. 3.5%
After the massive reversal off the lows from last Friday, some analysts were noting technical developments which may help lead to further advances this week. According to Chris Capre of 2nd Skies Forex, “On Friday, the pair formed a long tailed pin bar signal off a key role reversal level in 96.52.” Given the situation Capre went on to note it may be better to wait for a pullback before establishing long positions. “The intraday charts show massive buying off 95, so this could be a legitimate with trend setup. I however would not be buying on the break above the pin bar, as the risk and SL would have to be large, thus imbalancing the risk to reward ratios. So I’ll consider pullbacks towards 96.52 and 96, while targeting 99 and perhaps 100,” Capre concluded.
The FXstreet.com Trend Index remains in slightly bullish set up on the 1 hour chart, while the ob/os index reads neutral. Initial resistance sits at 98.41 (high of session), followed by 98.85 (previous support, now resistance on daily chart). Initial support sits at 97.69 (low of session), with a break below here possibly opening the doors towards 97.15 (the 20dma on 1 hour chart).
After the massive reversal off the lows from last Friday, some analysts were noting technical developments which may help lead to further advances this week. According to Chris Capre of 2nd Skies Forex, “On Friday, the pair formed a long tailed pin bar signal off a key role reversal level in 96.52.” Given the situation Capre went on to note it may be better to wait for a pullback before establishing long positions. “The intraday charts show massive buying off 95, so this could be a legitimate with trend setup. I however would not be buying on the break above the pin bar, as the risk and SL would have to be large, thus imbalancing the risk to reward ratios. So I’ll consider pullbacks towards 96.52 and 96, while targeting 99 and perhaps 100,” Capre concluded.
The FXstreet.com Trend Index remains in slightly bullish set up on the 1 hour chart, while the ob/os index reads neutral. Initial resistance sits at 98.41 (high of session), followed by 98.85 (previous support, now resistance on daily chart). Initial support sits at 97.69 (low of session), with a break below here possibly opening the doors towards 97.15 (the 20dma on 1 hour chart).