US$/JPY - Bear trend losing momentum

Date: 27th September,2016 by Timothy Straiton
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Current level at the time of writing is 100.35, trading below the monthly pivot level of 101.39 and also below the falling 40 week moving average at 108.42. This market is trading just below the Fibonacci 50% retracement level measured from the high of 125.85 made in June 2015 to the low of 75.55 made in November 2011. The Fibonacci 61.8% retracement measured over the same period comes in at 94.76 and is a potential downside target. One should however bear in mind that bullish divergence is making itself apparent in the 14 week relative strength index and is the first indication that the downside potential in this currency pair is limited. We feel that scaled up US$ purchases could be attempted down to the 94.00 level for a subsequent rally to 107.

The above represents the opinion and analysis of Mr Timothy Straiton, based on data available to him, at the time of writing. Mr.Straiton's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr.Straiton is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr.Straiton recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified market analyst with over 30 years experience, Mr.Straiton is not a Registered Securities Advisor. Therefore Mr.Straiton's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.