7 Oct 2014
USD/JPY: Buyers losing control short term?
FXStreet (Bali) - USD/JPY sold-off to eliminate all of Friday's NFP-driven gains, and some more, to reach its cheapest level at 108.66, closing NY near the lows.
With the technical background of a spectacular 2-month long bull run in mind, some tentative signs are starting to emerge that buyers are losing short term control over the USD/JPY market, with the outcome potentially being a sideways pattern to develop or increased bear pressure.
The topside failure to retest 110.09 high on an upbeat US NFP is quite revealing and suggests buying exhaustion, with the move since the NFP so far displaying bearish behavioral dynamics, as price popped up seeking topside liquidity towards the origin of the first sell-off on Oct 1 only to sell again.
Sean Lee, Founder at FXWW, notes: "On 2 occasions now in the past week we’ve had pretty nasty reversals from levels close to 110.00. This may not mean that the bull move is over, but it certainly suggests that bulls are losing momentum and we may be in for some protracted sideways trading."
With the technical background of a spectacular 2-month long bull run in mind, some tentative signs are starting to emerge that buyers are losing short term control over the USD/JPY market, with the outcome potentially being a sideways pattern to develop or increased bear pressure.
The topside failure to retest 110.09 high on an upbeat US NFP is quite revealing and suggests buying exhaustion, with the move since the NFP so far displaying bearish behavioral dynamics, as price popped up seeking topside liquidity towards the origin of the first sell-off on Oct 1 only to sell again.
Sean Lee, Founder at FXWW, notes: "On 2 occasions now in the past week we’ve had pretty nasty reversals from levels close to 110.00. This may not mean that the bull move is over, but it certainly suggests that bulls are losing momentum and we may be in for some protracted sideways trading."