USD/JPY: Tightening in the daily volatility - Natixis
The tightening in the daily volatility and an overbought weekly stochastic are major obstacles to an extension of the rally in the next coming days, according to Micaella Feldstein, Research Analyst at Natixis.
“Against this backdrop, a return above the resistance at 114.48 (rising trendline) sounds tricky and we’d better be vigilant with an eye on the support at 113.37 (daily Bollinger moving average).”
“A break below this threshold would indeed affect the daily upside parallels, paving the way to 112.72-112.80 (9-week moving average) to 112.02-112.17 (daily Bollinger lower band) and even to 111.58 (weekly Bollinger moving average).”
“The resistances are at 114, at 114.48, at 114.80-115, at 115.57-115.72 and at 116-116.15.”