USD/JPY Technical Analysis – FX Price Action Update – WC 21/1/13
by Nick Simpson, Forex-fx-4x.com
- The Japanese yen has weakened further after a USDJPY pullback to the 88.00 area met with significant demand earlier last week.
- USDJPY is now trading over the 90.00 handle for the first time in over two-and-a-half years, amid speculation the yen will drop further as the BOJ (Bank of Japan) looks to aggressively drive economic growth.
- The USDJPY pair has now experienced 10-consecutive weekly basis gains, and climbed 0.2% this past week, to close around the 90.10 area.
- Any dollar/yen downside in the week commencing 21/1/13 would need to contend with the prior highs around 89.65 which also provided support on Friday.
- Further to this is the 88.40 (4/1/13) area previous resistance swing high – which has confluence with a 50% retrace of the 86.82 – 90.20 leg just above and the (D1 Ichimoku) Tenkan Sen.
- Any sustained corrective move lower could see last weeks low around 87.79 as a focus.
- Price action around USDJPY 90.00 is seen as key in the near term as is the EURJPY 120.00 area PA.
- The latest COT report (Commitments of Traders) update from the CFTC (U.S. Commodity Futures Trading Commission) shows the JPY net short position was 66K versus the 74K reading last week. This decline in the short position is noted but there is no clear signal that the prevailing uptrend is about to end. Fighting this kind of momentum is not our favoured approach.
Forex Price Action, USDJPY Technical Report, Dollar Yen Outlook, Forex Weekly Analysis.
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