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28 May 2013
USD/JPY retakes 102.00
FXstreet.com (Barcelona) - The US dollar has resumed its upside against its Japanese counterpart on Tuesday, pushing the cross to its second straight session with gains, now beyond 102.00 the figure.
“Coupled with a weekly stochastic that is pinned in overbought territory and showing signs of turning lower and a MACD at or near 30 year highs, a technical case can be made for a more pronounced downside correction in the days/weeks ahead. 100.00… will be a clear swing point to the downside from here with a break targeting the bull channel bottom at 97.25”, suggested Matthew Perrier, Strategist at BMO.
The pair is now gaining 1.21% at 102.21 with the next resistance at 102.59 (61.8% of 103.74-100.75) followed by 103.57 (high May 23) and then 103.74 (2013 high May 22). On the flip side, a breakdown of 100.81 (MA21d) would open the door to 100.66 (low May 24) and finally 100.37 (Kijun-Sen line).
“Coupled with a weekly stochastic that is pinned in overbought territory and showing signs of turning lower and a MACD at or near 30 year highs, a technical case can be made for a more pronounced downside correction in the days/weeks ahead. 100.00… will be a clear swing point to the downside from here with a break targeting the bull channel bottom at 97.25”, suggested Matthew Perrier, Strategist at BMO.
The pair is now gaining 1.21% at 102.21 with the next resistance at 102.59 (61.8% of 103.74-100.75) followed by 103.57 (high May 23) and then 103.74 (2013 high May 22). On the flip side, a breakdown of 100.81 (MA21d) would open the door to 100.66 (low May 24) and finally 100.37 (Kijun-Sen line).