18 Feb 2015
USD/JPY techs: Setting up for new highs - JPMorgan
FXStreet (Bali) - USD/JPY technical picture is setting up for eventually making new highs especially after the backup in US rates, notes Nial O'Connor, FX Strategist at JPMorgan.
Key Quotes
"USD/JPY maintains the consolidation phase below the December peak. Importantly, the post-payrolls rally is consistent with the view for eventual new highs especially given the backup in US rates."
"Again, support in the 115.50 zone stays critical. This area represents the January/December range lows as well as the 38.2% retracement from the October low. Given the importance of this area, violations would confirm a deeper corrective phase into the 113.95/50 zone which includes dual retracements from the October and July lows and should be a max."
Key Quotes
"USD/JPY maintains the consolidation phase below the December peak. Importantly, the post-payrolls rally is consistent with the view for eventual new highs especially given the backup in US rates."
"Again, support in the 115.50 zone stays critical. This area represents the January/December range lows as well as the 38.2% retracement from the October low. Given the importance of this area, violations would confirm a deeper corrective phase into the 113.95/50 zone which includes dual retracements from the October and July lows and should be a max."