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13 Aug 2013
Flash: USD/JPY remains vulnerable despite minor bounce – Commerzbank
FXstreet.com (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank notes that USD/JPY has been range trading around the 96.00 level for the past three days before bouncing this morning.
Key Quotes
“Downside pressure continues to weigh on it, however. It will most likely shortly encounter 95.42, the 78.6% Fibonacci retracement of the June-to-July rise, then the 94.73 five month support line.”
“It is possible that this will hold the initial test, but we are not expecting to see a reversal. Over the coming weeks we allow for losses back to the 93.75/59 support area. This is where the June low and the 200 day moving average can be found.”
“We look for intraday rallies to struggle at around the 50% retracement at 97.65. Further resistance comes in at 98.51/56, where the 38.2% Fibonacci retracement meets the 55 day moving average.”
Key Quotes
“Downside pressure continues to weigh on it, however. It will most likely shortly encounter 95.42, the 78.6% Fibonacci retracement of the June-to-July rise, then the 94.73 five month support line.”
“It is possible that this will hold the initial test, but we are not expecting to see a reversal. Over the coming weeks we allow for losses back to the 93.75/59 support area. This is where the June low and the 200 day moving average can be found.”
“We look for intraday rallies to struggle at around the 50% retracement at 97.65. Further resistance comes in at 98.51/56, where the 38.2% Fibonacci retracement meets the 55 day moving average.”