20 Jan 2014
Flash: USD/JPY has scope to retest the 105.45/50 area? - Commerzbank
FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that USD/JPY following Fridays tiny range, her view is unchanged.
Key Quotes
“We suspect that the 102.85 low was the corrective low and this suggests that the market will re-test the 105.45/50 zone. This represents recent highs and its long term Fibonacci retracement. We remain unable to rule out another failure here and a deeper retracement taking hold to 102.05 and possibly 101.00, the 38.2% and 50% retracements of the move up from October.
“We have become more negative short term because not only has the market reversed from its long term Fibonacci retracement at 105.49, BUT we have a 13 count and also a divergence of the daily and weekly RSI. All 3 factors suggest that the market has topped for now.”
Key Quotes
“We suspect that the 102.85 low was the corrective low and this suggests that the market will re-test the 105.45/50 zone. This represents recent highs and its long term Fibonacci retracement. We remain unable to rule out another failure here and a deeper retracement taking hold to 102.05 and possibly 101.00, the 38.2% and 50% retracements of the move up from October.
“We have become more negative short term because not only has the market reversed from its long term Fibonacci retracement at 105.49, BUT we have a 13 count and also a divergence of the daily and weekly RSI. All 3 factors suggest that the market has topped for now.”