| Resistance: | 133.41 | 133.96 | 134.43 | 134.81 |
| Support: | 132.90 | 132.10-20 | 131.47 | 130.70-00 |
Please look at the attached PDF file and read the guide on my website to using this analysis otherwise you will miss a great deal....
Bias: This does seem to have a stronger bullish structure but wait for break of 133.41
Daily Bullish
Price declined to 131.50 and from there has rallied to the other end of the key range I detailed yesterday at 133.41. Of course we need to watch USDJPY carefully and a break above 95.35-50 should see the 133.41 high broken. If seen then look for follow-through to 133.96 minimum and probably 134.43 (max 134.81.) Take care as this could hold in a very deep pullback. Thus only above 134.81 would extend to 135.52-59 at least. Also note resistance at 136.40 & 137.40.
Medium Term Bullish
26th May: This hasn't been particularly clear and we should still keep an eye out on USDJPY. A break above 95.25-50 would provoke a deeper recovery that may well reflect here also. Above 133.41-85 sees 134.81 again and potentially 135.59.
Daily Bearish
We'll have to wait and watch what happens at 133.41 first. While it holds we could see a reversal lower although I'd still prefer to look for a selling area potentially around the 134.81 corrective high. Only an earlier break below 132.95 would provide a pullback at the very least to 132.10-20 and possibly the 131.50 pivot area again. It is here that any reversal lower will be confirmed. If break is seen look for losses down to 129.80-130.27.
Medium Term Bearish
27th May: It's still all a bit unclear but I am basically MT bearish but waiting for confirmation and until we get below 131.50 and 129.71 there is still risk of consolidation. Once below 126.96 the decline should resume.
I shall be presenting a seminar in Hong Kong on Saturday 27th June at the Excelsior Hotel in Causeway Bay. Please see http://www.earlthorn.com/ for details.
For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are now available on the Daily Forecast page of my web site
