Currency market: S&P 500 and GBP/JPY targets

GBP/JPY next vital levels for the weekly view are located at 151.18, 151.28, 151.73 and 151.99. Most important break is 151.28.

Best GBP/JPY analysis is the breakout from longer term averages t 150.25 and 150.88. GBP/JPY now enters normality on a normal scale to test 152.43 for higher prices.

GBP/USD as correlation to GBP/JPY this week remains much upside to easily 1.3334  and just ahead of big lines t 1.3373 then 1.3457.

GBP/USD as middle currency pair traded 70 pips higher while next middle currency AUD/USD as written traded 96 pips straight up. NZD/USD and EUR/USD as bottom and top currency pairs failed to move.

USD/JPY shorts at 114.22 and 114.37 to target 113.46 then 113.31. USD/JPY this week contains wide range ability and the pair to trade.

JPY cross pairs all traded 150ish pips higher and like GBP/JPY brole out from longer term averages. This is positive for upcoming weekly prices and trades.

USD/CAD remains safe above 1.2614 against a short strategy.

EUR/AUD as written broke below 1.6132 then 1.5950 to 1.5908 from 1.6148.

GBP/NZD must break below 1.9601 on a short strategy as GBP/NZD trades severely overbought.

Futrure writings; NASDAQ and 20 year monthly averages. Fed Funds rate  and 30 year monthly averages, 90 Day Libor and Eurodollars and connection to Fed Funds.  NASDAQ is not required 20 year monthly averages nor did today's S&P's.

90 day Libor is the offered side to Eurodollars yet Libor ceased to exist as Futures contracts and are no longer offerd. Since 2018 , central banks created Risk free interest rates such as SOFR to the FED, STIR to the ECB and Bank Bills to the RBA and RBNZ.

AUD and NZD are not affected by the new interest rate arrangements and remain viable trades in the Future. Not much at the BOE as its hybrid interest rate/ Repo rate system remains however trading dead as dead may trade. Sonia at 0.05 hasn't moved in months.

RBNZ probabilities: 43% no raise. RBNZ raised. How good are probabilities. Worthless. Probabilities factors as 2 ways for accuracy but for perfection, must run data.

Was OCR oversold or overbought and what may be a traget price. Probabilities eliminates because its a number thrown out by lazy traders. Many factor probabilities from Fed Funds and Eurodollar closing prices and this means probabilities change daily but range all over the board. Trust it at your peril.

S&P's 500

The S&P's are severely overbought from 1 month to 20 year monthly averages. The 5 year monthly average at last reoporting was located at 2700's. The average rose 300 pips in 6 ish months while the S&P's rampaged higher.

The 10 year is found at 2248.57 then the averages from the 12 year to 20 year are factored from the S&Ps at 1100's. The 1 year monthly average began its journey from 3700's and now trades 1000 points higher at 4600's. Overbought applies to the extremes.

The S&P's at 4700's trades at the top of the 1 year range.

Longs are impossible as a healthy correction is on the way. Healthy correction applies to all stock markets as stock markets are all connected as one instrument and much the same as the Currency/ Gold Trades. Gold is one instrument. The names and numbers may change but all are the exact same instruments.

The first big break is located at 4194.58 then 3683.88 and 3415.11.

Targets are located at 4497.09. then 4268.80, 4032.75, 3859.03.

Short entries are located anywhere as 4600's and 4500's trade in the stratosphere. The S&P's at minimum require a 200 point correction yet much more to trade at a normal price.

As DXY and Gold both trade above 5 year averages, its only natural for the S&P's and stock markets to trade lower. The S&P's are risk instruments which means as the S&P's drop, all risk instruments will follow to include currencies. But it also means DXY break at the 5 year average at 95.52 may remain above for quite some time in the future. Gold higher follows DXY.

Suggested is follow the Cash prices rather than Futures.