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10 Dec 2014
Resistance at 122.70 provoked failure for USD/JPY – Commerzbank
FXStreet (Barcelona) - Karen Jones, Head of Technical Analysis at Commerzbank, notes that USD/JPY faced rejection at the 122.70 resistance as it failed to sustain the break above 121.40 levels.
Key Quotes
“USD/JPY has failed to sustain the break of the 121.40 December 2005 high, the daily RSI has diverged and overhead lies its 14 year downtrend at 122.70. This 122.50/123.00 band represents a major upside objective for us. The market has failed here.”
“The Imoku 1 support has under pinned the chart since October 22 and this has now been eroded and the market and the 20 day moving average at 118.39 is exposed. We look for this to be eroded for losses to 117.25/20 then the 116.11, 11th November high and the 116.28 uptrend. Failure here will target the 55 day ma at 112.87.”
“Should the market break through 123.00(not favoured) we have nothing until the 124.14 2007 high.”
Key Quotes
“USD/JPY has failed to sustain the break of the 121.40 December 2005 high, the daily RSI has diverged and overhead lies its 14 year downtrend at 122.70. This 122.50/123.00 band represents a major upside objective for us. The market has failed here.”
“The Imoku 1 support has under pinned the chart since October 22 and this has now been eroded and the market and the 20 day moving average at 118.39 is exposed. We look for this to be eroded for losses to 117.25/20 then the 116.11, 11th November high and the 116.28 uptrend. Failure here will target the 55 day ma at 112.87.”
“Should the market break through 123.00(not favoured) we have nothing until the 124.14 2007 high.”