Forex: USD/JPY: Short-term outlook turning South - FXWW
FXstreet.com (San Francisco) - The Japanese yen gained ground for a second day against the greenback Tuesday, as USDJPY manages to extend its pulling back from recent 29-month highs at 87.20. Despite news of Japanese ESM bond buying Sean Lee, founder of FXWW says that the yen strengthens on 'broad-based profit taking'.
From Mr. Lee: "The focus today will again be on the Yen crosses, with AUDJPY perhaps taking centre stage around the time of the retail sales data."
Mr. Lee continues: "USDJPY is starting to retrace after an almost vertical rise from 79.00 and deeper pullbacks towards 85.00 certainly look possible. The short-term outlook is for a deeper retracement but it's dangerous to be selling weakness in such a vertical up-trend."
The 200-hr EMA (86.72) is offered as immediate support, a break of which could open scope for a retest of 85.50 support (April 2011 high). A slip below there would bring 38.2% retracement support around 84.10 in sight.
From Mr. Lee: "The focus today will again be on the Yen crosses, with AUDJPY perhaps taking centre stage around the time of the retail sales data."
Mr. Lee continues: "USDJPY is starting to retrace after an almost vertical rise from 79.00 and deeper pullbacks towards 85.00 certainly look possible. The short-term outlook is for a deeper retracement but it's dangerous to be selling weakness in such a vertical up-trend."
The 200-hr EMA (86.72) is offered as immediate support, a break of which could open scope for a retest of 85.50 support (April 2011 high). A slip below there would bring 38.2% retracement support around 84.10 in sight.
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