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12 Mar 2014
USD/JPY succumbs to risk aversion - FXStreet
FXStreet (Guatemala) - Ivan Delgado is the Head of Asian Editors and explained in his article that after a brief drive up above the daily cloud, USD/JPY failed to extend gains this week with risk aversion sentiment the main impediment for longs to build on recent gains.
Key Quotes:
“The rate is currently held by cluster of bids scattered around/below 103.00, with further falls potentially exposing the daily tenkan line, which today comes in confluence with a mid round number at 102.50, below which, buyers should find further protection by means of the daily kijun line coming at 102.30”.
“On the upside, for buyers to take back control of the market, we would need a break and hold above the 103.50/60 level in order to expect a larger absorption of offers with buyers likely re-grouping to target levels near recent trend highs”.
“Overall, while the market still offers contradictory signals, longs are still the force under control after the clearance of an important resistance area at 102.70/103.00 last week, which allowed both the tenkan and kijun lines to re-adjust higher”.
Key Quotes:
“The rate is currently held by cluster of bids scattered around/below 103.00, with further falls potentially exposing the daily tenkan line, which today comes in confluence with a mid round number at 102.50, below which, buyers should find further protection by means of the daily kijun line coming at 102.30”.
“On the upside, for buyers to take back control of the market, we would need a break and hold above the 103.50/60 level in order to expect a larger absorption of offers with buyers likely re-grouping to target levels near recent trend highs”.
“Overall, while the market still offers contradictory signals, longs are still the force under control after the clearance of an important resistance area at 102.70/103.00 last week, which allowed both the tenkan and kijun lines to re-adjust higher”.