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5 Jan 2015
USD/JPY longs rebuilding; technicals point to JPY124.15
FXStreet (Guatemala) - USD/JPY is trading at 120.20, down -0.22% on the day, having posted a daily high at 120.65 and low at 120.13.
USD/JPY has been choppy at the start of the year on the 120 handle. The Greenback is strong with volumes coming on and liquidity returning. The spikes of last week’s thin trading had the pair on the back foot when the major collapsed to score lows in the higher end of the 118 handle where the pair steadied and drifted back onto the bid and allowed long positions to rebuild. Analysts at Brown Brothers Harriman explained that above the multi year highs at 121.85, technicals point to JPY124.15, the high from 2007, and above there JPY125.00-60.
The bullish gap on the open this week puts the pair back into positive territory on the 120 handle but supply contains the price just shy of the multi year high at 121.85 and leaves the pair within a wide range on the handle. The calendar is light this week for Japan, which means the focus remains with the dollar ahead of the minutes of the FOMC December meeting and jobs data at the end of the week.
USD/JPY has been choppy at the start of the year on the 120 handle. The Greenback is strong with volumes coming on and liquidity returning. The spikes of last week’s thin trading had the pair on the back foot when the major collapsed to score lows in the higher end of the 118 handle where the pair steadied and drifted back onto the bid and allowed long positions to rebuild. Analysts at Brown Brothers Harriman explained that above the multi year highs at 121.85, technicals point to JPY124.15, the high from 2007, and above there JPY125.00-60.
The bullish gap on the open this week puts the pair back into positive territory on the 120 handle but supply contains the price just shy of the multi year high at 121.85 and leaves the pair within a wide range on the handle. The calendar is light this week for Japan, which means the focus remains with the dollar ahead of the minutes of the FOMC December meeting and jobs data at the end of the week.