9 Apr 2014
USD/JPY bearish; Support seen101.20, 100.80 - FXStreet
FXStreet (Guatemala) - Ivan Delgado, Head of Asian Editors at FXStreet explained in a report that buyers appear to be running out of reasons to remain bullish on USD/JPY short term with the rate suffering its sharpest decline in more than 6 months.
Key Quotes:
“Price broke its daily cloud to the downside only to stall at an ascending trendline coming off Feb lows”.
“The impulsive and consistent selling throughout Tuesday, coupled with the timid bounce off the low of the day, is a communication that even if buyers return more committed, they will likely be faced by strong selling participation on rallies”.
“On the downside, even if sentiment and technicals favour further downside, traders should be aware that any further slide is likely to encounter major hurdles”.
“Upon a break of the ascending trendline (today at 101.50) , 101.20 should act as strong support ahead of 100.80 (Feb swing low)”.
“On the upside, a void area has been created, making the buy at current levels an attractive proposition for an intraday relief rally”.
“Fundamentally, it is important to understand that the less dovish rhetoric by BoJ Governor Kuroda at his press conference on Tuesday, saying further easing is not needed for now, should be a warning sign leading to the risk of a further unwinding of specs short JPY”.
Key Quotes:
“Price broke its daily cloud to the downside only to stall at an ascending trendline coming off Feb lows”.
“The impulsive and consistent selling throughout Tuesday, coupled with the timid bounce off the low of the day, is a communication that even if buyers return more committed, they will likely be faced by strong selling participation on rallies”.
“On the downside, even if sentiment and technicals favour further downside, traders should be aware that any further slide is likely to encounter major hurdles”.
“Upon a break of the ascending trendline (today at 101.50) , 101.20 should act as strong support ahead of 100.80 (Feb swing low)”.
“On the upside, a void area has been created, making the buy at current levels an attractive proposition for an intraday relief rally”.
“Fundamentally, it is important to understand that the less dovish rhetoric by BoJ Governor Kuroda at his press conference on Tuesday, saying further easing is not needed for now, should be a warning sign leading to the risk of a further unwinding of specs short JPY”.