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19 Feb 2014
Flash: Bulls chanting for 103.00 - FXStreet
FXStreet (Guatemala) - Ivan Delgado is the Head of Asian Editors for FXStreet and he explained in an article that Judging by the levels where the Nikkei 225 is trading, the savvy USD/JPY trader should still collect further evidence that the underlying bull trend is to resume.
Key Quotes:
“To start with, a break and hold above the 103.00 resistance area at least on an hourly basis is necessary, leaving the daily kijun line behind. The break to the upside, if materializes, should come combined with confirmation of a recovery above the 15,000 psycho level in the Nikkei 225, otherwise, the risk of a fake upside break increases”.
“In case of topside failure, it would allow sellers to regain confidence for a potential re-play of the 102.70/103.00 – 100.80/101.40 range. That said, the inability to make lower lows on the latest decline should have hampered Yen longs’ conviction”.
“Overall, It seems as though the vigorous rise on Feb 18 has increased the risks of further gains, however, at this point, there is no enough evidence that suggest for that scenario unfolding unless 103.00 is convincingly regained”.
Key Quotes:
“To start with, a break and hold above the 103.00 resistance area at least on an hourly basis is necessary, leaving the daily kijun line behind. The break to the upside, if materializes, should come combined with confirmation of a recovery above the 15,000 psycho level in the Nikkei 225, otherwise, the risk of a fake upside break increases”.
“In case of topside failure, it would allow sellers to regain confidence for a potential re-play of the 102.70/103.00 – 100.80/101.40 range. That said, the inability to make lower lows on the latest decline should have hampered Yen longs’ conviction”.
“Overall, It seems as though the vigorous rise on Feb 18 has increased the risks of further gains, however, at this point, there is no enough evidence that suggest for that scenario unfolding unless 103.00 is convincingly regained”.