Daily Technical Outlook & Trading Ideals USD/JPY: Jan 27, 2015

  DAILY USD/JPY TECHNICAL OUTLOOK
Last Update At 26 Jan 2015 23:52GMT

Trend Daily Chart
Sideways

Daily Indicators
Falling

21 HR EMA
118.28

55 HR EMA
118.13

Trend Hourly Chart
Near term up

Hourly Indicators
Rising

13 HR RSI
64

14 HR DMI
+ve

Daily Analysis
Consolidation with upside bias

Resistance
119.96 - Jan 8 high
119.32 - Last Mon's high
118.87 - Last Tue's high

Support
118.08 - Hourly chart
117.83 - Y'day's Asian moring high, now sup
117.18 - Last Wed's low

. USD/JPY - 118.56... Although active cross-buying in yen pressured dlr to 117.27 ahead of Asian open on Mon, renewed weakness in yen vs other currencies lifted price n dlr rallied to 118.48 in NY morning. Later, dlr briefly retreated to 118.13 n then climbed to session high of 118.50 at NY close.

. Let's look at the bigger picture, as mentioned in recent update, dlr's volatile price action fm Dec's 7-1/2 year peak at 121.85 is developing into a triangle with a-leg trough at 115.57, subsequent bounce to 120.83 marked the b-leg top, then the decline to Jan's low at 115.85 was the c-leg bottom, last week's rise to 118.87 (Tue) signalled d-leg rise was in progress which shud falter below 120.83 n yield an e-leg fall in Feb. On the downside, only below key sup at 115.57 wud invalidate abv triangle scenario n yield correction of the LT uptrend fm 75.32 (2011 record low) to 114.55 n possibly twd 113.52 next month.

. Today, dlr's strg rebound fm said y'day's low at 117.27 suggests as long as minor sup at 118.08 hold, intra-day upside bias remains for gain twd 118.87 res, break there wud confirm abovementioned triangle d-leg upmove has resumed n shud yield gain to 119.32/37. Therefore, buying dlr again on dips is favoured.