DBS Bank analysts suggest that there is a likelihood of placing finishing touches to a five-legged 1-2-3-4-5 rally post the Apple Inc-inspired decline to a 104.87-low for the USD/JPY pair.
“One must recognise the 78.6% Fibonacci retracement of October 2018’s 114.53-high to 104.87 which stands out at 112.46. Suffice to say, hold focus point 5 for now.”
“One should expect 112.46 and even a minor resistance of 112.19 to hold the top together. But it might not necessarily mean the end of an uptrend that has been brewing since that dip at 104.87.”
“By all means, USD/JPY is steadying a ratchet to configure a five-legged 1-2-3-4-5 up-channel move on daily chart. While current move may have limiting tendencies, once a decline to 4 completes, USD should try once more to hinge for 5 – this intersects with the resistance line that perches at 113.02. However, a stronger USD can stretch a 1.618% extension into 114.82.”
“Interim support sits into 111.35 before the channel support rigged in around 110.66, with a mid-Donchian Channel support at 110.81.”
“The onus is on USD to regroup into channel support for one more fling higher, but a loss in quick succession under 109.46 and 108.66 would question USD bulls’ resolve – we would mark them as invalidation points.”