26 May 2014
USD/JPY pressing against 102.00 handle
FXStreet (Bali) - USD/JPY opens Asia unchanged just the 102.00 round number after an impressive 2-day run off 100.80 support, tested last May 21.
The daily chart still shows a range trading environment between 100.80 and 102.70/103.00, with chances of breaking out of it seen limited for another week as the BoJ remains firmly on hold and US 10 year yields struggle to find a directional bias.
Short term technicals suggest that the bullish momentum from last week should be retained, especially after taking out a descending trendline off May 5, which may encourage further bids coming into the market to test the next resistance level at 102.10 ahead of 102.30 (May 13 swing high). On the downside, as long as price keeps respecting the series of higher lows printed on the hourly, dip buying activity should remain solid.
The daily chart still shows a range trading environment between 100.80 and 102.70/103.00, with chances of breaking out of it seen limited for another week as the BoJ remains firmly on hold and US 10 year yields struggle to find a directional bias.
Short term technicals suggest that the bullish momentum from last week should be retained, especially after taking out a descending trendline off May 5, which may encourage further bids coming into the market to test the next resistance level at 102.10 ahead of 102.30 (May 13 swing high). On the downside, as long as price keeps respecting the series of higher lows printed on the hourly, dip buying activity should remain solid.