Forex: USD/JPY set to print second inside week pin at 78.6% Fibo
Forex pairs in this Article »
USD/JPY
FXstreet.com (San Francisco) - USDJPY spent the day trading in range with a negative bias, having fallen to an intraday low of 81.19 from an earlier high of 82.60 before closing practically unchanged at 82.38.
"The USDJPY will likely react straight after US employment news, soaring with a positive number and nose diving with a negative one," explains Valeria Bednarik, Chief Analyst at FXstreet.com. "Of course, if there's a strong deviation between actual reading and forecast, as a reading near expectations may keep the pair in its latest 81.80/82.60 range."
Technically speaking, Ms. Bednarik says that indicators are flat in neutral territory, giving little clue on direction. However if we consider the higher timeframes, the path of least resistance is clear: NORTH. The daily timeframe depicts a diverging order of moving averages, indicating bullish trend momentum, and the weekly timeframe chart look poised to print a second inside-week pin, as the market consolidates recent advances. If a bullish break above the 82.60/80 resistance area (78.6%, 84.16/77.12 decline) is realized in the weeks ahead, there may be scope for the market to run to 84.00 (March 2012 high). Above there, next bullish target lies at 85.50 (April 2011 high). To the downside, Ms. Bednarik identifies support levels at 82.30, 82.00 and 81.80.
"The USDJPY will likely react straight after US employment news, soaring with a positive number and nose diving with a negative one," explains Valeria Bednarik, Chief Analyst at FXstreet.com. "Of course, if there's a strong deviation between actual reading and forecast, as a reading near expectations may keep the pair in its latest 81.80/82.60 range."
Technically speaking, Ms. Bednarik says that indicators are flat in neutral territory, giving little clue on direction. However if we consider the higher timeframes, the path of least resistance is clear: NORTH. The daily timeframe depicts a diverging order of moving averages, indicating bullish trend momentum, and the weekly timeframe chart look poised to print a second inside-week pin, as the market consolidates recent advances. If a bullish break above the 82.60/80 resistance area (78.6%, 84.16/77.12 decline) is realized in the weeks ahead, there may be scope for the market to run to 84.00 (March 2012 high). Above there, next bullish target lies at 85.50 (April 2011 high). To the downside, Ms. Bednarik identifies support levels at 82.30, 82.00 and 81.80.
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