6 Jan 2015
USD/JPY breaks US lows ahead of Tokyo
FXStreet (Bali) - USD/JPY has broken through last US lows at 119.34, after holding exceptionally well despite the rout in global equities, with the exchange rate now setting a marginal new low for the week at 119.26 ahead of the Tokyo open.
Earlier in Asia, Sean Lee, Founder at FXWW, noted that "prime brokers were reporting some heavy profit taking in USD/JPY overnight which had a knock-on effect on other speculative positions such as the short EUR trade." Sean also mentioned that given the difficulty to crack technical resistance at 120.70, "it has encouraged IMM accounts in particular to start booking profits", Sean said.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "Short term, the technical picture is bearish, as per the 1 hour chart showing price developing below 100 and 200 SMAs, both around 120.20 acting as strong intraday resistance, while indicators hold directionless near oversold levels. In the 4 hours chart indicators turned flat in neutral territory, whilst the price approaches its moving averages. The 38.2% retracement stand at 118.70 also last week low which means a break below the level should favor a continued slide, moreover if local share markets maintain the risk aversion trading mode."
Earlier in Asia, Sean Lee, Founder at FXWW, noted that "prime brokers were reporting some heavy profit taking in USD/JPY overnight which had a knock-on effect on other speculative positions such as the short EUR trade." Sean also mentioned that given the difficulty to crack technical resistance at 120.70, "it has encouraged IMM accounts in particular to start booking profits", Sean said.
Technically, Valeria Bednarik, Chief Analyst at FXStreet, notes: "Short term, the technical picture is bearish, as per the 1 hour chart showing price developing below 100 and 200 SMAs, both around 120.20 acting as strong intraday resistance, while indicators hold directionless near oversold levels. In the 4 hours chart indicators turned flat in neutral territory, whilst the price approaches its moving averages. The 38.2% retracement stand at 118.70 also last week low which means a break below the level should favor a continued slide, moreover if local share markets maintain the risk aversion trading mode."