5 Feb 2014
Flash: Slippage below 101 is consolidative before a constructive USD/JPY rally - ANZ
FXStreet (San Francisco) - Tim Riddell, Head of Global Markets Research Asia at ANZ, is confident in USD/JPY rally as he sees that the sharp pullback from 105.50 to 101.00 indicates consolidation patters but not a reversal.
Key Quotes
"The sharp pullback after faltering at 105.50 will raise concerns over high momentum levels during the push above 100.00. However, this does not alter the long term bias for a series of gains for USD/JPY."
"Sustained slippage below 101 may indicate broader consolidation patterns (not a reversal) forming before USD/JPY can develop a more constructive rally. monthly close back above 103.50, ideally above 106.65, is needed to call an early return to the uptrend and raise the potential of a broader push to at least 111.50-00 if not the 120.00 area."
"Slippage below an interim 50% retracement (basis the rally from mid-November) has raised concerns that the faltering at 105.50 suggests that a more substantial consolidation may need to develop."
"This pushes aside the potential for an early move towards the 111.50-112.00 area. The extent of near-term slippage will prove critical with near and long term trend support in the 99.00-90 area."
Key Quotes
"The sharp pullback after faltering at 105.50 will raise concerns over high momentum levels during the push above 100.00. However, this does not alter the long term bias for a series of gains for USD/JPY."
"Sustained slippage below 101 may indicate broader consolidation patterns (not a reversal) forming before USD/JPY can develop a more constructive rally. monthly close back above 103.50, ideally above 106.65, is needed to call an early return to the uptrend and raise the potential of a broader push to at least 111.50-00 if not the 120.00 area."
"Slippage below an interim 50% retracement (basis the rally from mid-November) has raised concerns that the faltering at 105.50 suggests that a more substantial consolidation may need to develop."
"This pushes aside the potential for an early move towards the 111.50-112.00 area. The extent of near-term slippage will prove critical with near and long term trend support in the 99.00-90 area."