| USDJPY 05-03-10 |
USDJPY
Hawkish Bullard rhetoric combined with a rumoured spurt of Middle Eastern buying of USDJPY yesterday afternoon was enough to blow through the 1 week downtrend channel at 88.55, and the pair now looks to be threatening the stubborn upside resistance at 89.50. This 89.50 level has been bullet-proof since 25th Feb; so any break above may be an early signal of an impending correction higher. Much like EURUSD, the price action on the daily chart has formed an engulfing candlestick (albeit the bullish form in this instance), which will come as welcome relief to the bulls battered and bruised from recent JPY strength.
Numerous resistance levels above will however make tough work of any rallies, with the 100 day moving average at 90.17, prior resistance and fibonnacci level at 90.35 (38.2% of 84.83-93.77) and the 50 day moving average at 90.63. Nevertheless the NFPs later today certainly give us the potential catalyst for such a move, especially if there’s a shock positive print in the payrolls.
Supports on the downside are eyed at 88.15 (yesterday’s lows), then 87.37 (last seen 9 Dec).
Hawkish Bullard rhetoric combined with a rumoured spurt of Middle Eastern buying of USDJPY yesterday afternoon was enough to blow through the 1 week downtrend channel at 88.55, and the pair now looks to be threatening the stubborn upside resistance at 89.50. This 89.50 level has been bullet-proof since 25th Feb; so any break above may be an early signal of an impending correction higher. Much like EURUSD, the price action on the daily chart has formed an engulfing candlestick (albeit the bullish form in this instance), which will come as welcome relief to the bulls battered and bruised from recent JPY strength.
Numerous resistance levels above will however make tough work of any rallies, with the 100 day moving average at 90.17, prior resistance and fibonnacci level at 90.35 (38.2% of 84.83-93.77) and the 50 day moving average at 90.63. Nevertheless the NFPs later today certainly give us the potential catalyst for such a move, especially if there’s a shock positive print in the payrolls.
Supports on the downside are eyed at 88.15 (yesterday’s lows), then 87.37 (last seen 9 Dec).
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