Forex: USD/JPY hovering over 93.50/55

The Japanese yen continues to lose ground against the greenback on Wednesday, despite the increased risk aversion, pushing the cross above the 93.50 region.

According to William Moore, Technical Markets Strategist at RBS, “This zone between 93.75 and 94.77 is also exactly where the projected target lies from the inverse head and shoulders target”. The expert adds that a weekly close below 92.32 would be indicative of a potential reversal.

USD/JPY is flat at 93.57 with the next hurdle at 93.83 (high Feb.20) ahead of 93.96 (high Feb.19) and then 94.22 (high Feb.18).
On the downside, a dip below 93.12 (low Feb.20) would accelerate the descent towards the psychological mark at 93.00 and then 92.22 (low Feb.15).

Feb 20, 2013

Forex Flash: USD/JPY momentum stonewalled by resistance – RBS

The USD/JPY has rallied for some time – over 22% from the 2012 lows to the 2013 highs so far – however suddenly the upward momentum slowed and the this all occurred in the cluster of previous highs from 2009 and 2010 (between 93.75 and 94.77). According to Technical Strategist William Moore at RBS, “The RSI, which is at more stretched levels than it has been for at least 5 years is no longer going up and even begin to look like it’s rolling over. This zone between 93.75 and 94.77 is also exactly where the projected target lies from the inverse head and shoulders target as shown adjacent. It’s possibly too soon to call a reversal of trend but there are more signs now than previously, watch closely for weekly closes sub 92.32 as another sign.”

US: MBA Mortgage Applications fall -1.7% in Feb-15 week

In the week ending at February 15, mortgage applications in the US have fallen -1.7% according to MBA. Data had dropped -6.4% in the week before.