13 Feb 2015
USD/JPY: Bullish break still valid, target of 122.30/35 - TDS
FXStreet (Bali) - According to the FX Research Team at TDS, despite the heavy USD/JPY on Thursday, the break above the ceiling of the broader bull wedge consolidation is still valid, for a potential 122.30/35 target.
Key Quotes
"Heavy price action in USDJPY today has not, on the face of it, done too much damage to the break above the ceiling of the broader bull wedge consolidation in formation over the past couple of months."
"The initial break higher held earlier in the week and today’s dip back to (and just below) the 119.04 level can be considered a retest—a pretty stiff one—of the break out at this point."
"The bull wedge ceiling is support, reinforced by the 40-day MA (118.77); we can allow for a little slippage back under the 119 area and still consider the break out to be valid; but a sustained or prolonged period of trading back under 119 implies a false break and a likely dip back to major support at 116.07."
"While the USD stays in touch with 119, look for a gains towards 122.30/35. Very bullish USD above there."
Key Quotes
"Heavy price action in USDJPY today has not, on the face of it, done too much damage to the break above the ceiling of the broader bull wedge consolidation in formation over the past couple of months."
"The initial break higher held earlier in the week and today’s dip back to (and just below) the 119.04 level can be considered a retest—a pretty stiff one—of the break out at this point."
"The bull wedge ceiling is support, reinforced by the 40-day MA (118.77); we can allow for a little slippage back under the 119 area and still consider the break out to be valid; but a sustained or prolonged period of trading back under 119 implies a false break and a likely dip back to major support at 116.07."
"While the USD stays in touch with 119, look for a gains towards 122.30/35. Very bullish USD above there."