Wednesday, February 17, 2016

USD/JPY Slight Recovery

The pair made the biggest drop in the currency markets for February going from 121 to 110 in just 11 days. Since Feb 11, however, USD/JPY is on its way to recovery gaining some of what was lost to currently trade at 114-114.40.

Main trend still remains bearish with price well below the 200SMA. First level of support is 113 but the strongest level is the last low of 110.98. Bulls' first target is 116 but their strongest interest is to get back in the uptrend above 122.

With the last sharp decline it would be best to refrain from going long until we get a defined uptrend. Have in mind that bears are not yet satisfied as the 200SMA on the weekly chart falls on the 103 level.

Chart: USD/JPY D1


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5 comments:

  1. UnknownFebruary 17, 2016 at 7:15 PM

    It's still consolidating.

    ReplyDelete
  2. UnknownFebruary 17, 2016 at 9:29 PM

    Thank you for the useful analysis.

    ReplyDelete
  3. UnknownFebruary 17, 2016 at 9:54 PM

    Today the pair was seen 0.1% lower at ¥114.02, up from daily lows at ¥113.35, following the release of the FOMC.

    ReplyDelete
  4. UnknownFebruary 18, 2016 at 12:25 AM

    A good post with good insights into the situation.

    ReplyDelete
  5. UnknownFebruary 18, 2016 at 2:15 PM

    Just a minor pullback.

    ReplyDelete

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