Technical Analysis June 21, 2023 / 03:47 am UTC

Quarterly View: Chart USD/JPY: Strong resistance at 142.25/142.50

By PakLai Ng

Extending sharp rally in Q2 with break above the 138.00 level further extending the broader gains from the 127.22 low of January. Rally above the 142.00/142.25 resistance will see room to 142.50 to correct 61.8% of the losses from the Oct 2022 high.  

Clearance here, if seen, will further extend gains from the 127.22 low and see room to the strong resistance zone at 145.00/146.00. Gains from the January are seen corrective and lower high sought to further pressure the downside later which should keep the strong resistance at the 148.00/150.00 area and the 151.94, 2022 multi-year high, out of reach. 

Pullback see support starting at 140.90/140.00 area then the 138.00 congestion and previous high. Would take break here to return focus lower to the downside 135.00/134.00 congestion area. Below here will see room for deeper pullback to the 130.00 level.  

4Cast Ltd. and all of its affiliates (Continuum Economics) do not conduct “investment research” as defined in the FCA Conduct of Business Sourcebook (COBS) section 12 nor do they provide “advice about securities” as defined in the Regulation of Investment Advisors by the U.S. SEC. Continuum Economics is not regulated by the SEC or by the FCA or by any other regulatory body. This research report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Nonetheless, Continuum Economics has an internal policy that prohibits “front-running” and that is designed to minimize the risk of receiving or misusing confidential or potentially material non-public information. The views and conclusions expressed here may be changed without notice. Continuum Economics, its partners and employees make no representation about the completeness or accuracy of the data, calculations, information or opinions contained in this report. This report may not be copied, redistributed or reproduced in part or whole without Continuum Economics’s express permission. Information contained in this report or relied upon in its construction may previously have been disclosed under a consulting agreement with one or more clients. The prices of securities referred to in the report may rise or fall and past performance and forecasts should not be treated as a reliable indicator of future performance or results. This report is not directed to you if Continuum Economics is barred from doing so in your jurisdiction. Nor is it an offer or solicitation to buy or sell securities or to enter into any investment transaction or use any investment service.
Analyst Declaration
I, PakLai Ng, the lead analyst declare that the views expressed herein are mine and are clear, fair and not misleading at the time of publication. They have not been influenced by any relationship, either a personal relationship of mine or a relationship of the firm, to any entity described or referred to herein nor to any client of Continuum Economics nor has any inducement been received in relation to those views. I further declare that in the preparation and publication of this report I have at all times followed all relevant Continuum Economics compliance protocols including those reasonably seeking to prevent the receipt or misuse of material non-public information.