USD/JPY: Stronger recovery appears highly likely - Natixis

Micaella Feldstein, Research Analyst at Natixis, explains that the 111.60 area eventually held well for USD/JPY pair, preventing a deeper decline to the supports at 109.40-109.60 and for the next days, a stronger recovery appears highly likely.

Key Quotes

“The cross has already recovered markedly breaking above important technical thresholds at 113-113.09 (daily Bollinger moving average) and as the weekly stochastic has turned around.”

“A break of 114.52-114.64 (daily Bollinger upper band) would add weight to our bullish ST view, by unleashing added upwards potential to 115.90116.10 (declining trendline) and 118.27-118.40 (weekly parabolic). The supports are at 113.93, at 113-113.09, at 111.60 and at 109.40-109.60.”