Daily Forecast - 05 April 2016
USDJPY Spot
USDJPY closing in on February lows at 111.00/110.95 & below here tests important March lows at 110.65. Within this band is the low of the range as we become oversold short term. Therefore this is the best support of the day. Longs need stops below 111.40. A sustained break below 111.40 is an important sell signal (a close below is required for confirmation) & targets 111.05/00, 110.60/50 then 110.10/05, perhaps as far as 109.85/80 this week.
A good chance we will bottom somewhere from 111.00/110.95 down to important March lows at 110.65 for a recovery to minor short term resistance at 111.20/30. Above here is more positive & could be seen as a short term buy signal targeting 111.70/75 then 111.95/112.00.
GBPUSD spot
GBPUSD first resistance at 1.4275/80. A break above 1.4300 however signals further gains to 1.4325/30, perhaps as far as resistance at 1.4350/60. A break above 1.4375 could then targets important trend line (& head & shoulders neck line) resistance at 1.4450/60.
Minor support at 1.4259/55 but the first real support is at 1.4210/05. If we continue lower look for less important trend line support at 1.4165/55. A break lower however is a sell signal & could target 1.4100 then 4 week lows at 1.4055/50.
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