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USD/JPY bulls look for cloud base resistance

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - There is a little life out there to start the week although USD/JPY managed to open early Asia and recover from the lows of 120.09 to mark a high on the open so far in Tokyo of 120.35.

    Most markets, including Australia's, most of Europe's and the UK, are closed with Bank holidays besides Japan and the US. Meanwhile, data-wise, we had some second tier data from Japan just before the open that came in the form of industrial production m/m for Nov at -1.0% vs 1.4% previous, y/y 1.6% vs -1.4% for the same month, retail trade y/y -1.0%vs 1.8% pre, m/m -2.5% vs 1.1% and large retailers sales for same month 2.0% vs 2.9% pre.

    The focus in the main will stay with US data though and the Fed while keeping an eye on any further dissent from the BoJ in respect of their recent tactical actions that may be perceived as them preparing for a larger and direct form of easing in H1, opposed to the Fed that will be now scrutinised to see whether there are grounds for continuing their normalisation of monetary policy for the USA.

    USD/JPY levels

    Technically, USD/JPY is attempting towards the base of the cloud on the bid at 120.85 in a recovery to start the week. However, there is some way to go and supply at the 20 SMA on the 30 mins sticks is a barrier. The recent rejection of resistance offered by the 123.77 recent high left the pair in the hands of the bears all the way to recent lows of 120.09. On lower attempts, the 119.11 2012-2015 uptrend is key. While, a continuation of the upside has 123.77 on the wide and this is guarding 125.00/28 (the August high).
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