USD/JPY: bullish hammer is a bearish reversal? - Scotiabank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Analysts at Scotiabank noted the current conditions surrounding USD/JPY.

    Key Quotes:

    "Calmer markets (despite heavy losses for Chinese stocks) have allowed the JPY to slip lower so far today. BoJ officials continue to downplay the idea that they are chasing a weaker exchange rate.

    BoJ Gov. Kuroda stated that monetary easing is not aimed at weakening the yen while Governor Kiuchi said intervention is an option if the markets become volatile (implies monetary officials are not necessarily concerned by specific levels)."

    "Two major rejections of the 111.00/10 area and a break above short-term trend resistance at 111.56
    following a bullish “hammer” signal yesterday suggest that near-term bear pressure on USD/JPY is reversing. USDJPY gains will likely accelerate
    sharply above 114.50. "
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