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31 Mar 2014
USD/JPY: Risk for an extension higher - TDS
FXStreet (Bali) - According to Shaun Osborne, Chief FX Strategist at TD Securities, risk in USD/JPY is for an extension higher in the next 2-3 weeks.
Key Quotes
"The late week rally in USDJPY leaves the USD trading a little shy of break out resistance at 103.19 Friday (trend resistance and cloud chart top). On the face of it, weak and non-trending momentum indicators favour more range trading and the USD remaining capped below 103 in the next week or so."
"However, seasonal trends tend to favour Q1 USDJPY strength persisting through late April and while spot has barely respected the normal run of seasonal trends so far this year, we have to be somewhat alert to the risk of an extension higher in the next 2-3 weeks. That could put USDJPY back in touch with 105. A clear push above 103.20 would confirm the risk of USD gains extending."
Key Quotes
"The late week rally in USDJPY leaves the USD trading a little shy of break out resistance at 103.19 Friday (trend resistance and cloud chart top). On the face of it, weak and non-trending momentum indicators favour more range trading and the USD remaining capped below 103 in the next week or so."
"However, seasonal trends tend to favour Q1 USDJPY strength persisting through late April and while spot has barely respected the normal run of seasonal trends so far this year, we have to be somewhat alert to the risk of an extension higher in the next 2-3 weeks. That could put USDJPY back in touch with 105. A clear push above 103.20 would confirm the risk of USD gains extending."