USD/JPY resting above major support
James Chen March 19, 2014 6:55 PM
<p>USD/JPY (daily chart) continues to consolidate indecisively between its 50-day and 200-day moving averages, unable to make any significant gains as it fluctuates near its […]</p>
USD/JPY (daily chart) continues to consolidate indecisively between its 50-day and 200-day moving averages, unable to make any significant gains as it fluctuates near its year-to-date lows. Early March saw the currency pair rise swiftly to key resistance around 103.75, only to drop just as quickly to its current position just above the 2014 low of 100.75.
Now consolidating above this support level, the pair is also directly above other key technical support factors. These support factors include: the noted 200-day moving average, an uptrend support line extending back to the June 2013 low, and the 38% Fibonacci retracement level of the last major bullish trend.
If the pair is able to stay above this strong support, another rebound to the upside could likely be in order. A break above the 50-day moving average should once again target the 103.75 resistance level, followed by the 105.00 level. Any subsequent move above December’s five-year high of 105.43 would confirm a continuation of the long-standing bullish trend and could potentially begin to target further upside around the 108.00 resistance level.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.