FX Weekly (26 Feb ’17)
USD/JPY remains under pressure. Momentum readings and the Tension Indicator continue to weaken, highlighting fresh downside risks in the coming weeks.
A close below the 111.57 low of 7 February will confirm continuation of the December 2016 bear trend, with focus then turning to the 110.23 low of 22 November. Just lower is the 109.90 Fibonacci retracement, but any further slippage beneath here should stabilise towards the 107.85 retracement, as mixed background studies keep investors cautious.
A close above the 115.00 break level is needed to stabilise price action. However, any immediate bounce is expected to remain capped beneath here, as short-term studies also follow weekly readings lower.
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