9 Dec 2014
USD/JPY held by 120.65/70 support
FXStreet (Bali) - USD/JPY is presently testing bids around 120.65/70, after regaining the key intraday resistance-turned-support earlier in Tokyo, following a session high of 121.00 after a recovery off 120.22.
An acceleration in profit taking, coupled with an increase in risk aversion (as reflected by the significant increase in the VIX), led the Yen to end Monday as the top performer, although signs of short term sellers reinstating short positions to resume the trend are now evident.
Jim Langlands, Founder at FXCharts, notes: "On the downside, if 121.20 gives way, expect stops below 120.00 to be given a workout, potentially driving the dollar back to the spike 4 Dec low at 119.35. In the longer term though, buying dips remains the gameplan. Once the charts have eased their overbought condition and regained the trend highs, the dollar may find the legs to continue towards the 15 July 2007 high at 122.42 and eventually towards the target of 124.13 (17 June 2007 high)."
An acceleration in profit taking, coupled with an increase in risk aversion (as reflected by the significant increase in the VIX), led the Yen to end Monday as the top performer, although signs of short term sellers reinstating short positions to resume the trend are now evident.
Jim Langlands, Founder at FXCharts, notes: "On the downside, if 121.20 gives way, expect stops below 120.00 to be given a workout, potentially driving the dollar back to the spike 4 Dec low at 119.35. In the longer term though, buying dips remains the gameplan. Once the charts have eased their overbought condition and regained the trend highs, the dollar may find the legs to continue towards the 15 July 2007 high at 122.42 and eventually towards the target of 124.13 (17 June 2007 high)."