USDJPY 4-hourly: Dollar consolidates post-BOJ rally

January 8, 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.


Publication source
XM information  XM reviews

October 27, 2016
U.K. can't have Brexit A La Carte
Asian stock markets headed broadly lower, as investors remain focused on the earnings season, with Canon Inc. the biggest drag on the index...
October 27, 2016
The ascending of the indices
As for the Australian index AUS200, we are yet again approaching the ascending channel. We should wait for the candlestick patterns to appear and try to buy the assets then...
October 27, 2016
Equities investors are becoming hard to satisfy
Uninspiring earnings projections from giant U.S. companies are weighing on Asian equities this morning after Wall Street stocks fell for a second day...

OANDA Rating
Larson&Holz IT Ltd Rating
Grand Capital Rating
Vantage FX Rating
Orbex Rating
FBS Rating

Grand Option Rating
EZTrader Rating
TopOption Rating
Porter Finance Rating
Banc De Binary Rating
365BinaryOption Rating