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2 Apr 2014
USD/JPY bullish despite cautionary levels – FXStreet
FXStreet (Guatemala) - Ivan Delgado, Head of Asian Editors explained in an article that the continuation in Yen weakness has taken the pair further away from a recently broken cloud top on the daily, with the pair launched to meet next upside target at the 61.8% fib retrac from the Dec-Feb decline at 103.65/70.
Key Quotes:
“While the fourth straight days of gains warrants caution that a possible near term pullback may loom, with risk appetite on the rise (S&P 500 on a new record high) and bullish momentum still going strong, there is no evidence suggesting that any setback will be more than just a shallow one before dip buyers make a comeback”.
“The future cloud continues bearish but shrinking (positive for sentiment)”,
“The chikou span is just a whisker away from breaking through the top of the cloud above 104.00, an event that would reinforce the bullish case for next bullish target of 104.40 (76.8% fib retrac from the Dec – Feb decline)”.
“It is worth noting that ever since the breakout of 102.60 resistance last March 28, the hourly kijun has been acting as reliable support on dips, with a very thick cloud in the same hourly chart providing additional levels of support on extended setbacks”.
“At present, only a break below the 102.60 would jeopardize the bullish environment present”.
Key Quotes:
“While the fourth straight days of gains warrants caution that a possible near term pullback may loom, with risk appetite on the rise (S&P 500 on a new record high) and bullish momentum still going strong, there is no evidence suggesting that any setback will be more than just a shallow one before dip buyers make a comeback”.
“The future cloud continues bearish but shrinking (positive for sentiment)”,
“The chikou span is just a whisker away from breaking through the top of the cloud above 104.00, an event that would reinforce the bullish case for next bullish target of 104.40 (76.8% fib retrac from the Dec – Feb decline)”.
“It is worth noting that ever since the breakout of 102.60 resistance last March 28, the hourly kijun has been acting as reliable support on dips, with a very thick cloud in the same hourly chart providing additional levels of support on extended setbacks”.
“At present, only a break below the 102.60 would jeopardize the bullish environment present”.