USD/JPY: bulls committed with targets set on 110.00

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    USD/JPY has recovered fully onto the 109 handle and is better bid in the start of Tokyo, fuelled by the rally from 108.83 earlier in early Asia and the Nikkei up by more than 3% in the opening hour of Tokyo.

    USD/JPY recovered overnight as risk returned with a vengeance where the turn-around was so hard, we have exceeded previous Friday's closing prices of 108.77 and penetrated the 100 sma on the 1hr sticks.

    This has all come on the back of a sharp recovery in the oil price after the start of Asia's opening this week and the disappointments of the breakdown in Doha. At the same time, the announcements of a strike among Kuwaiti oil workers over the weekend and into this week also aided the bid today while traders looked forward. The knee-jerk was left as just that and markets moved on with the Yen subsequently giving up the bid to current spot.

    USD/JPY levels

    Despite the better bid vibe, Valeria Bednarik, chief analyst at FXStreet, pointed out earlier that, indeed, the dominant bearish trend is still in place, "As only some follow through above the 110.00 figure will favour a stepper recovery, quite unlikely considering the poor demand surrounding the USD." However, R2 is located at 110.19 and R3 at 110.63 and with plenty of RSI to go across the time frames. Failures on 109 above the pivot will introduce scope for supply down to S1 at 108.35 guarding yesterday's bearish gap lows of 107.82.
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