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18 Mar 2014
USD/JPY hits 2-day highs early in Asia
FXStreet (Córdoba) - The USD/JPY reached a fresh daily high at 101.94 as stocks in Japan opened with important gains. In the first minutes of trading the Nikkei 225 is rising 1.40%. The USD/JPY moved with an upside bias during all Monday and continues with momentum in the initial hours of Tuesday.
During the recent American session the pair rose from the intraday support at 101.55 to finish the day at 101.80, near daily highs. It was the first daily gain after falling in the previous four trading days.
USD/JPY outlook
Jim Langlands from FX Charts notes that the USD/JPY could had form a double bottom at 101.20 and that currently is moving in a range between March 14 highs at 101.85 and recent lows at 101.20. “We are currently stuck roughly in the middle of this range, and could end up doing much the same today although the 4 hour charts do look positive for another test of the topside, possibly for a look at 102.00”.
“A return to the downside, which will happen if there is any escalation in the current Crimea situation, saw strong corporate bids today from Tokyo and will likely do so again”, says Langlands.
During the recent American session the pair rose from the intraday support at 101.55 to finish the day at 101.80, near daily highs. It was the first daily gain after falling in the previous four trading days.
USD/JPY outlook
Jim Langlands from FX Charts notes that the USD/JPY could had form a double bottom at 101.20 and that currently is moving in a range between March 14 highs at 101.85 and recent lows at 101.20. “We are currently stuck roughly in the middle of this range, and could end up doing much the same today although the 4 hour charts do look positive for another test of the topside, possibly for a look at 102.00”.
“A return to the downside, which will happen if there is any escalation in the current Crimea situation, saw strong corporate bids today from Tokyo and will likely do so again”, says Langlands.