Daily Technical & Trading Outlook USD/JPY

DAILY USD/JPY TECHNICAL OUTLOOK
Last Update At 22 Apr 2016 00:22GMT



Trend Daily Chart
Down

Daily Indicators
Sideways

21 HR EMA
109.42

55 HR EMA
109.50

Trend Hourly Chart
Falling

Hourly Indicators
Sideways

13 HR RSI
37

14 HR DMI
-ve 

Daily Analysis
Consolidation with downside bias

Resistance
110.16 - 50% r of 112.68-107.63
109.90 - Y'day's 2-week high
109.61 - Hourly chart


Support
109.12 - Wed's NY low
108.77 - Wed's low
108.12 - Mon's NY low

. USD/JPY - 109.30... Although dlr extended this week's ascent to a 2-week high of 109.90 in Aust. y'day, price retreated to 109.51 on cross-buying in yen. Dlr later ratcheted lower to 109.33 in NY, then 109.28 at Asian open on Fri.

. Looking at the daily chart, dlr's 3-legged rise fm last Mon's fresh 17- month trough at 107.63 to 109.74, then y'day's gain to 109.90 confirms MT down- trend fm 2015 near 13-year peak at 125.86 (Jun) has formed a temporary low there n 1-2 weeks of choppy consolidation is in store, abv 109.90 would yield marginal gain to 110.15/25, however, as long as 110.67 (Mar's low, now res) holds, afore- said fall fm 125.86 is en route to 106.55, this is a 'minimum' 38.2% r retrace- ment of the entire LT uptrend fm 2011 record low at 75.32 (Mar) to 125.86. There fore, selling dlr on recovery in anticipation of another decline is recommended n only abv 110.67 risks stronger correction twd 113.00 (38.2% r fm 121.70). 

Today, we're holding a short position for a strg retracement of dlr's 3- legged rise fm last week's 107.63 low, below 109.00 would encourage for weakness twd 108.77 but 108.12 should hold. Only abv 109.90 yields one more rise but 'bearish divergences' on hourly indicators would cap dlr well below 110.67.  

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