USD/JPY has been moving up as a stronger greenback overcame safe-haven flows.
Here is their view, courtesy of eFXdata:
ING discusses USD/JPY technical outlook and maintains an ‘up’ rating on a multi-days-basis.
“The daily chart shows the consolidation below the horizontal resistance around 111.95. This could be the development of a larger bottom formation after the completion of the bullish falling wedge pattern around 110.80 at the end of August. This still suggests a move towards at least the July high around 113.10.
All in all, this would suggest that the downside potential is very limited and a short-term low should be close at hand from where the next rise should be expected. That is why we prefer to keep our rating at ‘Up’.
Solid support comes in at the former upper end of the falling wedge pattern and EMA-200 line, both around 110.30,” ING argues.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.