Daily Forecast - 13 April 2016
USDJPY Spot
USDJPY first support at at 108.45/40 is key to direction & holding above here targets 108.90/95 then resistance at 109.10/15. A good chance of a high for the day but shorts need stops above 109.35. A break higher however targets 109.65/69 then 109.85 before minor resistance at 110.00/04.
Failure to hold first support at 108.45/40 targets 108.05/00 then a retest of the lows at 107.67/61. We are oversold on the daily chart but with no sign the sell off has ended, a break below 107.55 today targets longer term Fibonacci support at 106.75/65. This is where it starts to get risky running shorts any further. Just below we have huge 14 year trend line support at 106.25 so this 50 pip area is very important this week.
EURUSD Spot
EURUSD 2 week range is 1.1325 up to 2 week high at 1.1453/58. A break higher this week is bullish of course & targets resistance at important October highs of 1.1490/95. Just be aware that a break above 1.1515/20 signals further gains targeting 1.1550/60.
Within the 2 week range the levels are becoming more blurred but I would suggest that holding below 1.1410/00 targets minor support at 1.1370/65 then this week's low at 1.1345. A break below 1.1325 however meets strong short term support at 1.1315/10. A bounce from here is expected but longs need stops below 1.1295. A break lower is a sell signal!!
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