USDJPY Technical Analysis Update – Outlook March 1st 2013
- The USDJPY currency pair has halted the recent decline following the gap higher on Sunday and a near term yen depreciation scenario has once again unfolded.
- A double inside day formation (Tue,Wed) has seen an upside breakout and the dollar/yen pair has started to test the 92.80 prior support area.
- In related market news we note that Japanese equities staged a comeback on Thursday following two consecutive daily basis declines, and the Nikkei index rallied around 2.7%. The US Dollar index has seen a move back to the recent range resistance highs around the 82.00 area.
- The current daily USDJPY range comes in around 84 pips, 90% of the ADR over 60 days.
- From a longer term perspective we note the current price action is based around the long term 38.2% Fibonacci retrace level circa USDJPY 94.00. This area remains as potential resistance on any move in the direction of the prevailing bullish trend.
- The 92.20 area has held as support today and is a near term focus. Any extended move lower brings the previous 91.30 area support zone back as a technical point of interest.
Nick Simpson, USDJPY Analysis 1st March