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12 Aug 2014
USD/JPY range-trading to persist a little longer - TDS
FXStreet (Bali) - According to TDS FX Team, the recent range-trading environment between 101/103 in USD/JPY looks set to persist for a little longer.
Key Quotes
"USDJPY’s early August stall and turn lower from the 103 area came despite some constructive technical underpinnings to the rally—gains through the “cloud” resistance which were reinforced by positive developments in key moving averages."
"However, the 103 line was well-capped in the end, with price action delivering a fairly forceful rejection of 103 via a bearish “evening star” top. The sell-off stalled Friday as the USD dipped below, and reversed from, the 200-day MA, forming a big, bullish “hammer”."
"The broader technical backdrop is still constructive for USDJPY but the market is lacking a stronger sense of direction at the moment and we continue to think that the recent range-trading environment between 101/103 will persist for a little longer."
Key Quotes
"USDJPY’s early August stall and turn lower from the 103 area came despite some constructive technical underpinnings to the rally—gains through the “cloud” resistance which were reinforced by positive developments in key moving averages."
"However, the 103 line was well-capped in the end, with price action delivering a fairly forceful rejection of 103 via a bearish “evening star” top. The sell-off stalled Friday as the USD dipped below, and reversed from, the 200-day MA, forming a big, bullish “hammer”."
"The broader technical backdrop is still constructive for USDJPY but the market is lacking a stronger sense of direction at the moment and we continue to think that the recent range-trading environment between 101/103 will persist for a little longer."