26 Jul 2013
Flash: USD/JPY, look for buying opportunities at 98.20/97.60 - JPMorgan
FXstreet.com (Barcelona) - USD/JPY daily chart suggests an increased risk that the medium term uptrend is back on track, according to JP Morgan Securities FX Team.
Key Quotes
"In line with the medium term bearish backdrop for JPY, the June reversal for USD/JPY has set the stage for a continuation of the medium term uptrend. Importantly, USD/JPY effectively held key support in the 93.50/94.00 area. Again, this includes the 38.2% retracement from the September ’12 low and should continue to act as a short term floor."
"While the very short term setup can allow for additional pause against the 101.35/101.55 area (76.4% retracement from the May peak), corrective retracements are viewed as buying opportunities. Ideally, pullbacks should hold in the 98.20/97.60 zone, while the 96.20/95.90 area is viewed as a max. A break through the 103.74 May peak would imply a deeper test of the 105 zone."
Key Quotes
"In line with the medium term bearish backdrop for JPY, the June reversal for USD/JPY has set the stage for a continuation of the medium term uptrend. Importantly, USD/JPY effectively held key support in the 93.50/94.00 area. Again, this includes the 38.2% retracement from the September ’12 low and should continue to act as a short term floor."
"While the very short term setup can allow for additional pause against the 101.35/101.55 area (76.4% retracement from the May peak), corrective retracements are viewed as buying opportunities. Ideally, pullbacks should hold in the 98.20/97.60 zone, while the 96.20/95.90 area is viewed as a max. A break through the 103.74 May peak would imply a deeper test of the 105 zone."