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23 Apr 2015
Long USD/JPY with a target of 124.59 - BofA
FXStreet (Bali) - MacNeil Curry, CFA, CMT, Technical Strategist at Bank of America, notes the bank haa initiated a new long position in $/¥ with a target of 124.59.
Key Quotes
"We have initiated a new long position in $/¥, as evidence says that the bull trend of the past 4+ months is drawing to a conclusion and the long-term uptrend is set to resume for 124.59, ahead of 128.45. Below 118.33 points to continued rangetrading, while those awaiting additional price confirmation need a break of 120.86 (the Apr-13 high). In contrast, the correction in €/$ continues to unfold."
"However, the correction is turning increasingly Triangular (a range defined by two contracting trendlines). This is one of our favorite patterns and should provide an excellent opportunity to go short for a move toward 1.0000 once the pattern completes."
"For now, stay patient. Gains should not exceed the 55d at 1.0967, while a break of 1.1053 points to a larger correction than anticipated. Meanwhile, €/£ is resuming its larger downtrend, following the break of 0.7174/0.7166. We look for a test and break of the Mar-11 low at 0.7014, ahead of the 0.6900/0.6800 region. Bounces should not exceed the Apr-19 high at 0.7245."
Key Quotes
"We have initiated a new long position in $/¥, as evidence says that the bull trend of the past 4+ months is drawing to a conclusion and the long-term uptrend is set to resume for 124.59, ahead of 128.45. Below 118.33 points to continued rangetrading, while those awaiting additional price confirmation need a break of 120.86 (the Apr-13 high). In contrast, the correction in €/$ continues to unfold."
"However, the correction is turning increasingly Triangular (a range defined by two contracting trendlines). This is one of our favorite patterns and should provide an excellent opportunity to go short for a move toward 1.0000 once the pattern completes."
"For now, stay patient. Gains should not exceed the 55d at 1.0967, while a break of 1.1053 points to a larger correction than anticipated. Meanwhile, €/£ is resuming its larger downtrend, following the break of 0.7174/0.7166. We look for a test and break of the Mar-11 low at 0.7014, ahead of the 0.6900/0.6800 region. Bounces should not exceed the Apr-19 high at 0.7245."