USD/JPY jumped to as high as 84.17 last week and closed strongly. Initial bias remains on the upside this week and further rise should be seen to 85.92 cluster resistance (38.2% retracement of 94.97 to 80.29 at 85.89) next. On the downside, break of 82.78 support is needed to indicate topping. Otherwise, outlook will remain bullish even in case of retreat.
In the bigger picture, with weekly MACD staying above signal line, as well as bullish convergence condition, 80.29 would possibly be an important medium term low. Nevertheless, we'd still prefer decisive break of 85.92 cluster resistance (38.2% retracement of 94.97 to 80.29 at 85.89) to confirm. In that case, stronger rally would be seen towards 94.97 resistance and possibly above. Nevertheless, before that, USD/JPY could still have another test on 79.75 (1995 low) before bottoming.
In the long term picture, there is no indication of trend reversal yet and USD/JPY's long term down trend could still extend further to 1995 low of 79.75. We'd anticipate some strong support from 79.75 initially to bring rebound. Focus will be on whether 79.75 would hold or USD/JPY is indeed resuming the multi decade decline that started back in the 80's.
USD/JPY jumped to as high as 84.17 last week and closed strongly. Initial bias remains on the upside this week and further rise should be seen to 85.92 cluster resistance (38.2% retracement of 94.97 to 80.29 at 85.89) next. On the downside, break of 82.78 support is needed to indicate topping. Otherwise, outlook will remain bullish even in case of retreat.
In the bigger picture, with weekly MACD staying above signal line, as well as bullish convergence condition, 80.29 would possibly be an important medium term low. Nevertheless, we'd still prefer decisive break of 85.92 cluster resistance (38.2% retracement of 94.97 to 80.29 at 85.89) to confirm. In that case, stronger rally would be seen towards 94.97 resistance and possibly above. Nevertheless, before that, USD/JPY could still have another test on 79.75 (1995 low) before bottoming.
In the long term picture, there is no indication of trend reversal yet and USD/JPY's long term down trend could still extend further to 1995 low of 79.75. We'd anticipate some strong support from 79.75 initially to bring rebound. Focus will be on whether 79.75 would hold or USD/JPY is indeed resuming the multi decade decline that started back in the 80's.
http://www.actionforex.com/
No comments:
Post a Comment