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6 Feb 2013
Forex: USD/JPY 94.00 handle proves short-lived as cross eases
Despite the recent fatigue of the JPY across the board, the USD/JPY managed to secure additional gains by posting a fresh 33-month high past the psychological 94.00 barrier – albeit briefly (94.07 daily maximum). Since then, the pair has eased back to earth towards the 93.75/77 level during European trading. Still, the cross is operating steadfastly, negotiating a gain of +0.13% Wednesday.
According to Karen Jones, an Analyst at Commerzbank, “Above 94.07 we have the 2010 high at 94.99 then the March 2009 spike low at 95.77”, identifying that the pair has met its target of 93.32/96 (measurement higher from its triangle and the 38.2% retracement of the move down from 2007), which should act as a major resistance/target zone for this move.
Technically speaking, the recent uptrend in the USD/JPY eyes the next target and key medium-term barrier at 94.97 (May 2010 high), a retest of which would confirm full retracement of 2010/2011 descent and confirm the base at 75 zone (lows of 2011). Any reversal should subsequently ideally hold above 92.00 handle, keeping the structure intact, notes Slobodan Drvenica, an analyst at Windsor Brokers Ltd.
According to Karen Jones, an Analyst at Commerzbank, “Above 94.07 we have the 2010 high at 94.99 then the March 2009 spike low at 95.77”, identifying that the pair has met its target of 93.32/96 (measurement higher from its triangle and the 38.2% retracement of the move down from 2007), which should act as a major resistance/target zone for this move.
Technically speaking, the recent uptrend in the USD/JPY eyes the next target and key medium-term barrier at 94.97 (May 2010 high), a retest of which would confirm full retracement of 2010/2011 descent and confirm the base at 75 zone (lows of 2011). Any reversal should subsequently ideally hold above 92.00 handle, keeping the structure intact, notes Slobodan Drvenica, an analyst at Windsor Brokers Ltd.