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3 Sep 2015
USD/JPY: 50% retracement of recent decline is key - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that an early advance was contained overnight in USD/JPY around the 50% retracement on its last two weeks decline, still the level to break to confirm a stronger advance.
Key Quotes:
"Anyway, the USD/JPY tends to remain range bound ahead of US Nonfarm Payroll data, which means little should be expected for this Thursday. Short term, the pair maintains a neutral-to-bearish tone, as in the 1 hour chart, the pair is also below its 100 and 200 SMAs, whilst the technical indicators are hovering around their mid-lines."
"In the 4 hours chart, the technical picture supports a continued decline, as the moving averages extended their bearish slopes well above the current price, whilst the Momentum indicator is turning back south below its 100 level, and the RSI indicator hovers around 46. To confirm a more sustainable decline, the pair needs to break below 119.35, 61.8% retracement of the same rally."
Key Quotes:
"Anyway, the USD/JPY tends to remain range bound ahead of US Nonfarm Payroll data, which means little should be expected for this Thursday. Short term, the pair maintains a neutral-to-bearish tone, as in the 1 hour chart, the pair is also below its 100 and 200 SMAs, whilst the technical indicators are hovering around their mid-lines."
"In the 4 hours chart, the technical picture supports a continued decline, as the moving averages extended their bearish slopes well above the current price, whilst the Momentum indicator is turning back south below its 100 level, and the RSI indicator hovers around 46. To confirm a more sustainable decline, the pair needs to break below 119.35, 61.8% retracement of the same rally."