USD/JPY: Minor Break Lower Adds to Downside Pressure

By: MIG Bank | Tue, Jul 10, 2012
Print Email

USD/JPY has today broken to the downside. A push under 79.157 is now sought to initiate a fresh impulsive move to the downside. We continue to expect a slow grind lower, given that our downside target (a revisit of the all-time low) is not too distant.

Furthermore, we note the speedy deterioration of the Japanese current account surplus. The failure to rise on the back of this news is another indication that a short bias is warranted.

This view is further supported by our bullish bias in the US Dollar index. In a strengthening US Dollar environment it would be expected that the Yen will continue to act as a safe haven. A re-test of 79.16 is anticipated over coming sessions. However, we note that there is probably limited downside below 75.35, so if the move lower does continue it is likely to be slow and grinding in nature.

A re-test of the 200 day moving average, close to 79.007 is anticipated over coming sessions. A break back over 80.636 is required to alter our bearish bias.

Daily Technical Report

 


 

MIG Bank

Author: MIG Bank

MIG Bank

MIG BANK, formerly known as MIG INVESTMENTS, was established in Neuchatel, Switzerland as an online Forex broker and in 2009 became the world's 1st Forex broker to obtain a Swiss banking license. Since its foundation in 2003, MIG BANK specializes in online Forex trading and remains a leading Forex broker for clients in more than 120 countries.

No information published constitutes an offer or recommendation, to buy or sell any investment instrument, to any transactions, or to conclude any legal act of any kind whatsoever.

The information published and is provided by MIG BANK for personal use and for purposes only and are to change without notice. MIG BANK makes no representations (either expressed or implied) that the information and opinions expressed are accurate, complete or up to date. In particular, nothing contained constitutes financial, legal, tax or other advice, nor should any investment or any other decisions be made solely based on the content. You should obtain advice from a qualified expert before making any investment decision.

All opinion is based upon sources that MIG BANK believes to be reliable but they have no guarantees that this is the case. Therefore, whilst every effort is made to ensure that the content is accurate and complete, MIG BANK makes no such claim.

Limitation of liability
MIG BANK disclaims, without limitation, all liability for any loss or damage of any kind, including any direct, indirect or consequential damages.

Material Interests
MIG BANK and/or its board of directors, executive management and employees may have or have had interests or positions on, relevant securities.

Copyright
All material produced is copyright to MIG BANK and may not be copied, e-mailed, faxed or distributed without the express permission of MIG BANK

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/