USD/JPY rallies corrective and should reverse downside again - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that the USD/JPY cross has retreated markedly since March 10, when it peaked at 115.51, breaking below important technical thresholds around 113-113.16 and the support at 111.60 (declining trendline).

Key Quotes

“The erosion of this last threshold sends a very strong sell signal, all the more so as the daily volatility has increased sharply and as the daily indicators have turned around.”

“Against this backdrop, rallies should be seen as corrective and the cross should reverse downside again to 110.82-111, 110-110.20 and 109.30-109.43 (declining trendline). A break below the latter threshold would open the door to 108.70 (weekly Bollinger lower band). The resistances are at 111.60-111.80, at 112.43, at 113-113.16 and at 114.67-114.80.”