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14 Oct 2015
USD/JPY: death cross on daily chart imminent - Scotiabank
FXStreet (Guatemala) - Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that this week’s modest, steady gains in JPY hint to a shift in relative policy expectations rather than a sensitivity broader market sentiment, the latter typically providing for violent knee-jerk reactions in JPY rather than the steady gains observed over the past three sessions.
Key Quotes:
"USD/JPY short-term technicals: neutral-bearish.
"Signals are becoming increasingly bearish as the RSI flirts with 40 and as short term MA’s provide confirmation."
"USD/JPY is steadily toward closing levels not observed since early September with vulnerability to a decline toward the October 2nd low at 118.68."
"Medium-term signals are also bearish as we consider the imminent crossing of the 50 day MA below the 200 day MA—also typically known as the ‘death cross’."
Key Quotes:
"USD/JPY short-term technicals: neutral-bearish.
"Signals are becoming increasingly bearish as the RSI flirts with 40 and as short term MA’s provide confirmation."
"USD/JPY is steadily toward closing levels not observed since early September with vulnerability to a decline toward the October 2nd low at 118.68."
"Medium-term signals are also bearish as we consider the imminent crossing of the 50 day MA below the 200 day MA—also typically known as the ‘death cross’."