6 May 2014
USD/JPY risks shifting to the downside
FXStreet (Guatemala) - Ivan Delgado, Head of Asian Editors at FXStreet explains USD/JPY managed to hold above a key uptrend line coming from Feb 2013 low on Monday, although the bounce was not strong enough to get the pair out of trouble, as price remains below the ichimoku cloud.
Key Quotes:
“Last Friday, we saw a topside failure to take out the top of the cloud and kijun line, with such major false breakout leading to risks now shifted to the downside, with clearance off the mentioned trendline needed to target the next key target for sellers at 101.20/30 (sequence of lows) ahead of 100.80 (early Feb low)”.
“On the fundamental front, the fact that BoJ Governor Kuroda has maintained a hard-line stance refusing further monetary easing in the near term, coupled with the situation in Ukraine and inability of the US yields and the US Dollar to rally on positive data, it suggests that risks remain skewed to the downside”.
Key Quotes:
“Last Friday, we saw a topside failure to take out the top of the cloud and kijun line, with such major false breakout leading to risks now shifted to the downside, with clearance off the mentioned trendline needed to target the next key target for sellers at 101.20/30 (sequence of lows) ahead of 100.80 (early Feb low)”.
“On the fundamental front, the fact that BoJ Governor Kuroda has maintained a hard-line stance refusing further monetary easing in the near term, coupled with the situation in Ukraine and inability of the US yields and the US Dollar to rally on positive data, it suggests that risks remain skewed to the downside”.