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1 Nov 2013
Flash: USD/JPY to rally? – TD Securities
FXstreet.com (London) - Research teams at TD Securities noted USD/JPY has recovered from the low 97 range—major trend support—and, today at least, is trading quite strongly.
Key Quotes:
“The bounce from trend and 200-day MA supports defies the soft technical tone we had identified here before. Essentially, USD/JPY remains in a range and it is a range that is steadily tightening”.
“While downside supports hold, the broader pattern of trade looks more like a consolidation of the late 2012/2013 rally”.
“Now, a clear push through the 99.20 triangle top would imply the risk of a renewed leg higher”.
“Oscillator studies are mixed over various timeframes, suggesting more range trading, however, so we may need to see gains extending well significantly (above 100.50) to signal a rally”.
Key Quotes:
“The bounce from trend and 200-day MA supports defies the soft technical tone we had identified here before. Essentially, USD/JPY remains in a range and it is a range that is steadily tightening”.
“While downside supports hold, the broader pattern of trade looks more like a consolidation of the late 2012/2013 rally”.
“Now, a clear push through the 99.20 triangle top would imply the risk of a renewed leg higher”.
“Oscillator studies are mixed over various timeframes, suggesting more range trading, however, so we may need to see gains extending well significantly (above 100.50) to signal a rally”.