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Currency market: Nasdaq, USD/JPY, GBP/JPY

By the numbers, American stock market hierarchy is established by Dow Jones, NASDAQ and the S&P's. Dow Jones was created first in 1882 followed by the S&P's in the 1940's and NASDAQ in 1971. NASDAQ is the middle market index and trades 11,000 points to the S&P's and 20,032 points to Dow Jones while Dow Jones trades 31,000 points to the S&P's.

Lowest numbered S&P's  to overbought and oversold is enough to influence prices to Dow Jones and NASDAQ but the same principle as overbought and oversold Dow Jones is enough to bring up or down the rear guard as NASDAQ and S&P's.

NASDAQ like the S&P's are massively overbought and most specifically seen from the 4 then 5 year monthly average at 9110.28 and from the 10 to 20 year monthly averages. Break at 9110 targets 8422.67 and averages drift lower from 8422.

The first big break is located at 14169.18 then 12069.08 and 10652.41. Targets are located at 15088.56 then 14461.19, 13465.96, 1324.97, 12660.05 and 12032.06, 1150.29.

Same as the S&P story yesterday, longs are impossible and short only strategy. Prices from the 4, 5 and averages to 20 years trade at extremes.

EUR/USD target is currently 1.1031 and up from 1.1026 as the longer average is rising. Banks are reporting EUR/USD at a 1.0800 target. The actual number is 107.95 but recommended is 1.08 as I reported many weeks ago is an unrecognized target. Don't push your luck.

GBP/JPY dropped yesterday from 151.13 and before reported 151.18 and 151.28. Current 150.15 to travel  higher must break 150.27 and 150.80 then on to 151.00's again.

USD/JPY achieved 113.78 highs for the week. USD/JPY contains a long way to 114.00's and can reach middle to low 114.00's easily.

USD/JPY 5 vital numbers for today 112.96, 113.15, 113.34, 113.81 and 114.09.

Author

Brian Twomey

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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