27 Dec 2013
Flash: USD/JPY, potential for a 110.50/112.00 target - ANZ
FXstreet.com (Barcelona) - USD/JPY looks set to extend gains into neat year, according to Tim Riddell, Head of Global Markets Research at ANZ.
Key Quotes
"Closing strongly above 103.00-25 (38.2% of past 20 years) raises the potential of a full 50% retracement to 110.50-112.00."
"An interim retracement level of 105.60 (61.8% of range since 2007’s high) and a declining resistance from 1998, currently at 106.85-90, should provide some headwind as the trend continues."
" Daily momentum indicators (Figure 2) may not be at the highs seen in November, but are not rolling over. Caution over divergence may be overstated and is often pushed aside by strong uptrends, especially when weekly momentum is positive."
"Strong December trends in USD/JPY tend to extend into the second full week in January before consolidating (sometimes merely for a pause). The current rally looks set to continue with concern now only on a close below 103.00."
Key Quotes
"Closing strongly above 103.00-25 (38.2% of past 20 years) raises the potential of a full 50% retracement to 110.50-112.00."
"An interim retracement level of 105.60 (61.8% of range since 2007’s high) and a declining resistance from 1998, currently at 106.85-90, should provide some headwind as the trend continues."
" Daily momentum indicators (Figure 2) may not be at the highs seen in November, but are not rolling over. Caution over divergence may be overstated and is often pushed aside by strong uptrends, especially when weekly momentum is positive."
"Strong December trends in USD/JPY tend to extend into the second full week in January before consolidating (sometimes merely for a pause). The current rally looks set to continue with concern now only on a close below 103.00."