USD/JPY: Be ready to sell a break below 105.00
|USD/JPY – EUR/JPY
USDJPY we wrote: finally makes a move, breaking minor support at 106.05/105.95 to target 105.60/65 (which is holding as I write this morning) & probably minor support at recent lows at 105.20/10 later today.
We are 4 pips away this morning.
EURJPY in a very clear sideways trend but could be forming a head & shoulders reversal pattern. Watch for a break below the neck line at 124.40/30 (which we are very close to as I write this morning) for a sell signal.
Daily Analysis
USDJPY breaks lower targeting 105.60/65 & probably minor support at recent lows at 105.20/10. Be ready to sell a break below 105.00 targeting 104.75/70, 104.35/30 & the July low at 104.20/16.
A selling opportunity at 105.90/106.00 with stops above 106.20. An unexpected break higher is a buy signal initially targeting 106.50/60.
EURJPY break below 125.30 was our sell signal targeting 124.90/80 & important head & shoulders neck line support at 124.40/30 (nearly there). A break lower is a medium term sell signal targeting 123.40/30 & 122.70/60, perhaps as far as a buying opportunity at 122.30/20, with stops below 121.90.
A bounce from 124.40/30 is very possible because we are oversold in the short term, targeting 124.75 & 125.00/10. Try shorts at 125.45/55 with stops above 125.70. (Shorts here are more likely to see a break below the trend line on the next test).
Chart
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