USDJPY 4-hourly: Dollar consolidates post-BOJ rally

8 January, 2015

The US dollar has been consolidating its more than 10-yen rapid November- early December gain lately.  It has not made a new high since December 8 of the previous year – around a month or so.  Although the US dollar has in the meantime made fresh highs versus the other majors such as the euro, the pound and the Australian dollar, the December 8 high of 121.84 against the yen has held.

In mid-December, as a result of a violent correction, dollar / yen dropped to as low as 115.56.  After a recovery, dollar / yen has been trading between 118 and 120.80 for the past 3 weeks (including the Christmas and New Year holidays).

As the dollar is in a long-term and medium-term uptrend against the Japanese yen, this consolidation period probably represents a buying opportunity – with the important caveat that risk sentiment does not turn negative.  For this reason it is important to place the right stops in case of a risk sell-off.  A violation of 118 on the downside for example could signal some more short-term trouble for the pair.

For dollar bulls, 120.82 (the 3-week high) and 121.84 (the 7 ½ year high) represent the next goals.  The MACD is giving a positive indication, as it is above its signal line, trending up and preparing to turn positive (it is marginally negative at present).  The RSI at 54 is slightly bullish but far from the overbought level of 70.

 


Source link  
Dollar stabilizes after drop

The dollar stabilized today after sliding to a four-month low against the yen in reaction to news of the setback on healthcare reform...

Euro rallies after French debate

The dollar remained soft in Asian trading today as it came under pressure from falling US Treasury yields following not-so-hawkish speeches by Fed officials on Monday. Chicago Fed President Charles Evans quashed hopes for a faster pace of rate hikes...

Price approximately at 6-week high

EURUSD is currently up for the day and roughly at the level of the six-week high of 1.0782 recorded on Thursday. The RSI indicator is pointing to a bullish short-term bias as it is well above the 50 neutral level at 61...


Euro gets added boost

The euro was one of the top performing major currencies in the Asian session today after being lifted...

Antipodean currencies in the spotlight

The Asian session was an interesting one for both AUD and the NZD...

Dollar subdued ahead of Fed

The US dollar traded in a narrow rage against the yen as investors await the outcome of the Federal Reserve’s two-day policy meeting later today. It is widely expected that the FOMC will announce a rate hike...


EURGBP tests cloud base

EURGBP is being capped by the daily Ichimoku cloud which is acting as very strong resistance. The last time...

GBPUSD bottoms at 57-month low, bearish bias remains

GBPUSD touched a 57-month low of 1.4634 on Wednesday but bounced on...

USDJPY consolidates, scope for upside

USDJPY consolidated after a sharp rally from 105.19...

  


Share: