19 Jan 2015
USD/JPY bulls squeezed and Yen down to test the 117 handle
FXStreet (Guatemala) - USD/JPY has dropped over half a cent and is testing the 117 handle to the downside, currently trading at 117.14 and down 0.37% with a low of 116.96.
There is no data or sign of a catalyst so far across the chatter but this will come out soon enough in respect of demand for the Yen. Meanwhile, this may be an opportunity for the committed bulls to add to positions or longs squeezed on stops to re-enter along the same bullish trading plan.
116.80 is next support below the 117.08 pivot and ahead of the mid December low and the 38.2% retracement to115.55/50 should 116.37 fail to protect the psychological 116.00 level. The week ahead looks like another week of volatility around the ECB and to some extent, the BoJ minutes. The ECB takes the spotlight, while the consensus is for the Central Bank to start its sovereign QE.
There is no data or sign of a catalyst so far across the chatter but this will come out soon enough in respect of demand for the Yen. Meanwhile, this may be an opportunity for the committed bulls to add to positions or longs squeezed on stops to re-enter along the same bullish trading plan.
116.80 is next support below the 117.08 pivot and ahead of the mid December low and the 38.2% retracement to115.55/50 should 116.37 fail to protect the psychological 116.00 level. The week ahead looks like another week of volatility around the ECB and to some extent, the BoJ minutes. The ECB takes the spotlight, while the consensus is for the Central Bank to start its sovereign QE.