20 Jul 2015
USD/JPY bulls tiring after knee jerk relief rally on Greece?
FXStreet (Guatemala) - USD/JPY is currently trading at 124.12 with a high of 124.18 and a low of 124.06.
USD/JPY is quiet at the start of the week, with Japan out the markets are thin and awaiting the Europeans to enter with the attentions on Greece still who are to meet their liabilities to the ECB and IMF today. Meanwhile, the week will pan out and expose how committed the bulls are at these levels after the Greek relief rally combined with Yellen's hawkishness.
USD/JPY has been trading at the highest levels since Dec 2002 wit a new high scored on the 17th last week as markets returned to risk on and stocks rallying while Yellen offered a hawkish tone in her two day testimony and underpinned the hawks hopes of a rate hike before the year is out. Meanwhile, there are still risks over the Greek saga and whether the EZ can work together towards the same objective in respect of the finalised details and conditions of the third bailout package for Greece.
USD/JPY support at 123.30 remains key
Technically, Valeria Bednarik, chief analyst at FXStreet explained that the short term picture presents some bearish divergences yet to be confirmed, as in the 4 hours chart the Momentum indicator has been posting lower highs and is about to cross the 100 level towards the downside, as the price advanced up to 124.22 last week. "At this point, the pair needs to break below 123.30, the immediate support, to confirm additional declines for the upcoming sessions, while below 122.90 the downward continuation will become more sustainable in time."
USD/JPY is quiet at the start of the week, with Japan out the markets are thin and awaiting the Europeans to enter with the attentions on Greece still who are to meet their liabilities to the ECB and IMF today. Meanwhile, the week will pan out and expose how committed the bulls are at these levels after the Greek relief rally combined with Yellen's hawkishness.
USD/JPY has been trading at the highest levels since Dec 2002 wit a new high scored on the 17th last week as markets returned to risk on and stocks rallying while Yellen offered a hawkish tone in her two day testimony and underpinned the hawks hopes of a rate hike before the year is out. Meanwhile, there are still risks over the Greek saga and whether the EZ can work together towards the same objective in respect of the finalised details and conditions of the third bailout package for Greece.
USD/JPY support at 123.30 remains key
Technically, Valeria Bednarik, chief analyst at FXStreet explained that the short term picture presents some bearish divergences yet to be confirmed, as in the 4 hours chart the Momentum indicator has been posting lower highs and is about to cross the 100 level towards the downside, as the price advanced up to 124.22 last week. "At this point, the pair needs to break below 123.30, the immediate support, to confirm additional declines for the upcoming sessions, while below 122.90 the downward continuation will become more sustainable in time."