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7 Jan 2015
USD/JPY may pull-back to 116.75 in the long run - UOB
FXStreet (Barcelona) - The Market Strategy Team at UOB Group expect USD/JPY’s corrective pull-back to extend to 116.75 followed by 115.55 in the long term, but suggest USD strength is likely to be seen in the months ahead.
Key Quotes
"Current pull-back could extend to 116.75 followed by 115.55."
"118.75 was a key support being the minor low in late December but more importantly, the rising trend-line connecting the October’s low of 105.20 and the December’s low of 115.55. The break below this level yesterday coupled with Daily MACD holding firmly below 0 suggests that this pair will likely remain under pressure for the next couple of weeks."
"The immediate target is at 116.75 but a move towards last month’s low of 115.55 will not be surprising. Trailing-stop for the bearish view is at 120.75 even though 119.80 is already a very strong resistance."
"All said, the expected down-move is viewed as part of corrective pull-back from a longer-term perspective and further USD strength is still likely in the months ahead."
Key Quotes
"Current pull-back could extend to 116.75 followed by 115.55."
"118.75 was a key support being the minor low in late December but more importantly, the rising trend-line connecting the October’s low of 105.20 and the December’s low of 115.55. The break below this level yesterday coupled with Daily MACD holding firmly below 0 suggests that this pair will likely remain under pressure for the next couple of weeks."
"The immediate target is at 116.75 but a move towards last month’s low of 115.55 will not be surprising. Trailing-stop for the bearish view is at 120.75 even though 119.80 is already a very strong resistance."
"All said, the expected down-move is viewed as part of corrective pull-back from a longer-term perspective and further USD strength is still likely in the months ahead."