29 Jul 2013
Flash: USD/JPY pointing downwards? – TD Securities
FXstreet.com (New York) - The USD/JPY slid below the base of consolidation (bear wedge) support last week and the sell-off in spot over the past three sessions leaves the USD looking precariously poised, warns the TD Securities Team.
Key quotes
“We think the long-term USD rally stalled (right at the top of the monthly cloud chart resistance) in May and the USD risks turning lower in a meaningful way in the next few weeks.”
“USD/JPY weakness below the base of the wedge formation implies the potential for the repeat of the 103-93 drop seen in May/June from this week’s breakdown point (99.80). A drop of that magnitude will compromise some key medium-term support points (in the low 94 zone), which would darken the medium-to-long-term outlook even more.”
Key quotes
“We think the long-term USD rally stalled (right at the top of the monthly cloud chart resistance) in May and the USD risks turning lower in a meaningful way in the next few weeks.”
“USD/JPY weakness below the base of the wedge formation implies the potential for the repeat of the 103-93 drop seen in May/June from this week’s breakdown point (99.80). A drop of that magnitude will compromise some key medium-term support points (in the low 94 zone), which would darken the medium-to-long-term outlook even more.”