USD/JPY: consolidation could be long term

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 10, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - USD/JPY is currently trading at 123.11 with a high of 123.44 and a low of 123.02.

    USD/JPY is testing the downside of the 123 handle while corporates are concerned for the implications of a Fed hike this year as we approach year end final preparations in the corporate sector. We are also in hedging territory for exporters keeping a lid on the pair that has rallied into a new range of late.

    USD/JPY levels

    Technically, we are back below the 123.20 resistance and bearish indicators point towards a break below the 123 handle of continued failure targeting 122.44 S2.

    On a continuation, the trend line drawn off the multi-year high set in June JPY125.85 and the August high JPY125.30 is the target. However, while the dollar's 50-day moving average moved below the 200-day average in October for the first time since the end of Q3 2014, this signals we are perhaps stuck in a new tight range for the foreseeable future in USD/JPY.
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