USDJPY key to direction is support at 106.80/90
|USDJPY & EURJPY Spot
USDJPY key to direction is support at 106.80/90. Holding here keeps recovery hopes alive re-targeting 107.50 & a selling opportunity at 107.85/90. Try shorts with stops above 108.20.
Failure to hold above 106.80/90 targets support at 106.40/35, with a good chance of a low for the day. Try longs with stops below 106.05. A break lower however targets 105.70/65.
EURJPY unable to beat 1.5 month trend line resistance at 131.60/70; watch for a high for the day. Further gains meet stronger Fibonacci resistance at 132.10/20. Try shorts with stops above above 132.50. A break higher however targets 133.00/05 then quite strong resistance at 133.15/20. On further gains look for 133.70/80 then resistance at 134.15/25.
Failure to beat 1.5 month trend line resistance at 131.60/70 targets first support at 131.15/10 (holding perfectly) but below here targets 130.75/70 in the sideways trend. Failure here risks a slide to 130.40 & perhaps as far as good support at 130.10/00.
GBPUSD & GBPJPY Spot
GBPUSD unexpectedly beat first resistance at 1.4030/40 with shorts stopped as we trade sideways. However as we wrote on Friday, I would only reverse in to a long above 1.4105. We topped exactly here but a break higher today targets 1.4135/40 & 1.4180/85 before the 1.4240/45 March high.
Failure to beat 1.4105 targets 1.4070 & first support at 1.4040/30. Below 1.4010 risks a retest of last week's low at 1.3963 before strong support at 1.3940/30. A bounce from here is expected, but longs need stops below 1.3890. A break lower is a sell signal targeting minor support at 1.3820/10.
GBPJPY key to direction is strong resistance at 150.60/80. Shorts need stops above 151.20 this time!. A break higher is a buy signal targeting 151.40 & only minor resistance at 152.10/20 for some profit taking on longs perhaps, but shorts are definitely too risky.
Failure to beat 150.60/80 targets 150.15/10 then minor support at 149.75/65. Further losses meet better support at 149.40/30. Exit shorts & try longs with stops below 149.00. However the best support today is at 148.60/50 of course.
AUDUSD & NZDUSD Spot
AUDUSD failure to beat minor resistance at 7710/00 in the sideways trend targets 7655 before important longer term support at 7640/30. Try longs here with stops below 7590. A sustained break below 7590 is a sell signal however targeting 7560/55, 7530, 7505/00.
First resistance at 7705/10 but bulls need a move above 7730 to target strong resistance at 7755/65. Try shorts with stops above 7790.
NZDUSD key to direction is the 7280/85 area. We topped exactly here this morning once again as I write, but a break higher targets minor 61.8% Fibonacci resistance at 7325/30. Further gains retest the top of the 3 week range at 7355. Unlikely but a break higher targets 7375. Exit any longs here & try shorts at 7400/7410, with stops above 7450.
Holding below 7285/80 risks a slide to 7742/40 & minor support at 7220/15. Further losses meet better support at 7185/80. Try longs with stops below 7160 or hold longs & add at equally important support at 7140/30. Either way, these 2 levels are important supports.
EURUSD & USDCAD Spot
EURUSD unable to beat first resistance at 1.2275/80 as we take the 50 pips profit (we cannot run trades far in this sideways trend), but strong resistance at 1.2310/20 is more important. Try shorts at with stops above 1.2340. Reverse back in to a long if stopped (& we hold above 1.2310) targeting 1.2345 & 1.2375/80, perhaps as far as 1.2400.
A buying opportunity at 1.2225/15 again today with stops below 1.2190. SELL IN TO SHORTS IF STOPPED. A break below 1.2220 IS AN IMPORTANT SELL SIGNAL.
USDCAD holding first resistance at 1.2800/1.2790 & first downside target of 1.2730/20 before strong support at 1.2700/90 for profit taking on shorts. It could be worth trying longs from here down to 1.2670, with stops below 1.2630.
Gains are likely to be limited if seen with first resistance at 1.2790/1.2800 (we topped exactly here) but above 1.2830 allows a recovery to 1.2870/80. Try shorts with stops above 1.2910.
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