6 Jan 2015
USD/JPY looking more negative – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes that USD/JPY is looking negative near term, but another attempt towards 121.86 levels can be made as long as the pair holds above 118.85.
Key Quotes
“USD/JPY is looking more negative near term, as it has started to erode the cloud support on the 240 minute chart. However while above 118.85 we remain unable to rule out another attempt at the 121.86 recent high. Directly above here lies the 122.58/123.40 major resistance, this is the location of the 14 year downtrend and the long term Fibonacci retracement. It is also TD resistance on the weekly chart and we note the 13 count on the monthly chart.”
“We would tighten stops on long positions as we are looking for this market to fail shortly.”
“Below 118.85 would alleviate immediate upside pressure for a slide back to the 116.35 then 115.55.”
“We note that the daily Elliot wave count is suggesting that we are likely to see a retracement towards 113.80/111.40.”
Key Quotes
“USD/JPY is looking more negative near term, as it has started to erode the cloud support on the 240 minute chart. However while above 118.85 we remain unable to rule out another attempt at the 121.86 recent high. Directly above here lies the 122.58/123.40 major resistance, this is the location of the 14 year downtrend and the long term Fibonacci retracement. It is also TD resistance on the weekly chart and we note the 13 count on the monthly chart.”
“We would tighten stops on long positions as we are looking for this market to fail shortly.”
“Below 118.85 would alleviate immediate upside pressure for a slide back to the 116.35 then 115.55.”
“We note that the daily Elliot wave count is suggesting that we are likely to see a retracement towards 113.80/111.40.”