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11 Mar 2015
USD/JPY: Tough resistance and headwinds through 122.00
FXStreet (Guatemala) - USD/JPY is currently trading with at 121.12 with a high of 121.21 and a low of 120.84.
USD/JPY has been on the offer with a stronger Yen on weakness across the shares overnight while the 122 handle was proving too much too soon as bears protect the barrier and exporters get a good deal, historically, to off load their future FX requirements. The price action was strong to the downside and longs were squeezed out, all the way to recently below the 121 handle. The major has managed a move up, however, and again towards the 121.20 resistance - Tokyo supports the move.
Technically, the ranges are familiar and until there is a convincing break to the upside of 122.30 and beyond, there are going to be strong headwinds against the bull's efforts. The aforementioned resistance is the 15 year downtrend as well as the 23.6% retracement of the move down from 1982 located at 123.40 - could be a tough nut to crack.
USD/JPY has been on the offer with a stronger Yen on weakness across the shares overnight while the 122 handle was proving too much too soon as bears protect the barrier and exporters get a good deal, historically, to off load their future FX requirements. The price action was strong to the downside and longs were squeezed out, all the way to recently below the 121 handle. The major has managed a move up, however, and again towards the 121.20 resistance - Tokyo supports the move.
Technically, the ranges are familiar and until there is a convincing break to the upside of 122.30 and beyond, there are going to be strong headwinds against the bull's efforts. The aforementioned resistance is the 15 year downtrend as well as the 23.6% retracement of the move down from 1982 located at 123.40 - could be a tough nut to crack.