Bank of New York Mellon sees the risks of continuing the restoration of the yen

Despite the fact that it is published by the major corporate accounts for the most participants in the market presents pleasant surprises, the bulls on the stock market have not been able to take advantage of this to the further development of, and the inability of the major U.S. stock indexes to break above key resistance levels, according to strategists Bank of New York Mellon, is a wake-up call. The bank noted that the Japanese currency remains one of the main indicators of investors' attitudes to risk and see the risks of continuing to strengthen it, the more so in the past weeks it has shown a fairly good reduction. Strategy has drawn attention to the fact that the dollar / yen remains above support at Y97.25, but still keeps a pair of below the line of resistance from the recent highs in the vicinity of Y99.70 mood is negative, and strong break below would signal a further drop in the original to minimizing the end of March around Y95.90, and then to Y93.50, where the minimum of the past month, and to Y92.40. Meanwhile, the euro / yen, showing stabilization in the last few days, also remains under threat of further decline. In Bank of New York Mellon does not preclude the continuation of an upward correction, but are awaiting the resumption of sales in the approach to the line of resistance to the maxima of this month (approx. ProFinance.ru: Today at Y130.70), which can support a return to the support at Y125.90, the loss of which would signal the potential for continued movement to Y122.15. As regards, the pound / yen, the British currency is still too close to the trendline with minima in March and, while the bulls still able to keep it from falling below, the implementation of any further decline threatens to turn initially to the Y139 (38.2% of motion with Y118.80 to Y151.50), and then to a minimum on 30 March about Y135.70. Resistance is now taking place in the vicinity of Y145.