24 May 2014
USD/JPy gains to remain capped - TDS
FXStreet (Guatemala) - Strategists at tD Securities explained that they look for USD/JPY gains to remain capped at or near the cloud resistance base (currently 102.44) from here.
"USD/JPY’s decline stalled around the 200-day MA and the 2014 low just below 101 this week; the large “doji” candle that price action developed mid-week around these technically sensitive support points will allow for a modest rebound in the USD in the near-term but we do not (yet, at least) have any conviction that the recovery in the USD is sustainable".
"Underlying momentum indicators are still negatively aligned on the longer-term studies and the USD’s overall position on the daily cloud chart remains negative".
We look for USD/JPY gains to remain capped at or near the cloud resistance base (currently 102.44) from here. Only a sustained push higher through the mid/upper 102s would imply that there is more recovery potential at the moment.
"USD/JPY’s decline stalled around the 200-day MA and the 2014 low just below 101 this week; the large “doji” candle that price action developed mid-week around these technically sensitive support points will allow for a modest rebound in the USD in the near-term but we do not (yet, at least) have any conviction that the recovery in the USD is sustainable".
"Underlying momentum indicators are still negatively aligned on the longer-term studies and the USD’s overall position on the daily cloud chart remains negative".
We look for USD/JPY gains to remain capped at or near the cloud resistance base (currently 102.44) from here. Only a sustained push higher through the mid/upper 102s would imply that there is more recovery potential at the moment.