Home EUR/USD: 55d AVG Key; USD/JPY: in Bullish Setup – BofA
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EUR/USD: 55d AVG Key; USD/JPY: in Bullish Setup – BofA

The USD has room for gain against its major counterparts, according to the latest technical assessments from  Bank of America Merrill Lynch.

Here are the levels to watch:

Here is their view, courtesy of eFXnews:

USD/JPY is poised to a breakout with a bullish setup is currently in the making,says Bank of America Merrill Lynch.

“The multi-month contracting range looks to be drawing to a conclusion as the decline from 120.86 counts as the final leg of this admittedly complex Triangle,” BofA notes.

A break of 120.86, says the uptrend is resuming, while a break of 122.02 confirms a return to trend for 124.16/124.59 ahead of 128.45,” BofA projects.

“Back below 118.33 invalidates the bullish setup and points to a larger range trade than anticipated,” BofA adds.

USDJPY weekly chart setting up for a bullish trend dollar yen April 2015

Turning to EUR/USD, BofA advises bulls to watch the 55d average around 1.0992.

“While we remain long term EUR/USD bears, targeting 1.0283/1.000, in the near term the pair is stuck in a choppy corrective range between 1.0462 (Mar-16 low) and the 55d avg (now 1.0992),” BofA notes.

Bulls need a sustained break of the 55d to point to a greater correction than anticipated, exposing the 1.1261/1.1534 February congestion zone,” BofA advises.

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Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.