19 AUG 2013 14:04 EDT
By eFXnews.com
Commerzbank entered into a technical tactical short USD/JPY from 97.90, with a stop at 98.90, and a target at 94.80.
"USD/JPY shot up to 98.66 before slipping again. A continued slide should be seen in the days to come while this high caps. As long as it does, the 78.6% Fibonacci retracement of the June-to-July rise at 95.42 will remain in focus. Below it lies the five month support line at 94.82. Over the coming weeks we allow for losses back to the 93.95/75 support area. This is where the June low and the 200 day moving average are," CB says as a rationale behind this call.
Meanwhile, CB stands flat on EUR/USD after stopping out of its last short position last week on a tiny loss.
"Last week EUR/USD reached the 1.3208/1.3188 support zone (July 11 high and the current August low) from where it accelerated higher. The August high at 1.3401 is thus back into the picture. A rise above the 1.3419 June peak would suggest ongoing strength to 1.3500/20, the minor psychological level and 13th February high. This is regarded as the last defence for the 1.3711 February high. We do not favour such a strong rise, though, and believe that the currency pair will falter around the 1.3500 mark," CB outlines its current technical bias on the pair.
"Only a drop through the 1.3208/1.3188 support area will alleviate upside pressure. Failure here will target the 1.3000 region. Loss of this zone is needed to re-target the 1.2755/40 July and April lows," CB adds.
"USD/JPY shot up to 98.66 before slipping again. A continued slide should be seen in the days to come while this high caps. As long as it does, the 78.6% Fibonacci retracement of the June-to-July rise at 95.42 will remain in focus. Below it lies the five month support line at 94.82. Over the coming weeks we allow for losses back to the 93.95/75 support area. This is where the June low and the 200 day moving average are," CB says as a rationale behind this call.
Meanwhile, CB stands flat on EUR/USD after stopping out of its last short position last week on a tiny loss.
"Last week EUR/USD reached the 1.3208/1.3188 support zone (July 11 high and the current August low) from where it accelerated higher. The August high at 1.3401 is thus back into the picture. A rise above the 1.3419 June peak would suggest ongoing strength to 1.3500/20, the minor psychological level and 13th February high. This is regarded as the last defence for the 1.3711 February high. We do not favour such a strong rise, though, and believe that the currency pair will falter around the 1.3500 mark," CB outlines its current technical bias on the pair.
"Only a drop through the 1.3208/1.3188 support area will alleviate upside pressure. Failure here will target the 1.3000 region. Loss of this zone is needed to re-target the 1.2755/40 July and April lows," CB adds.
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