EUR/USD, USD/JPY: Where Should Pullbacks Hold? – BofAML

Bank of America Merrill Lynch FX Technical Strategy Research notes EUR/USD remains range-bound in the near-term, but could test upper end of range near 1.14-1.15

“A tactical YTD upside breakout on EURUSD (price of 1 EUR in USD) above 1.0829-1.0906 suggests near-term upside potential to the 2-year+ range highs near 1.1366 to 1.1495.

Pullbacks that hold above last weeks low near 1.1110 keeps the trend in favor of a test of the highs. The upper end of the weekly cloud and YTD pattern breakout point at 1.0979-1.0829 provide additional support,” BofAML argues.

Turning to USD/JPY, BofAML notes that the pair has corrected but has plenty of support near the 200-week MA, Fibonacci levels, and weekly Ichimoku cloud support in the 111.16-108.84 range.

“In our view, this bullish set-up favors a renewed move higher in USDJPY toward the downtrend line from mid 2015 and the late-2016/early-2017 peaks near 116.65 and 118.60-118.66, respectively with an eventual move push to the 2015 highs not ruled out.

Staying above the 111-108 range keeps this medium-term view intact,” BofAML adds. 

EUR/USD is trading circa 1.1250 and USD/JPY circa 110.50 as of writing. 

Source: Bank of America Merrill Lynch Rates and Currencies Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews

from Online Forex Trading Resource
View thesource article here


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s