Long term targets: EUR/USD, GBP/USD, USD/JPY

Brian Twomey Brian's Investment

GBP/USD offical break is located at 1.2588 to target 1.2721. To challenge 1.2588 and break, GBP/USD must hold above 1.2515, 1.2551, 1.2471 and 1.2441. Overall longs are safe above GBP/USD 1.2350.

For next week, GBP/USD overbought begins at 1.2550's. A lower GBP/USD allows another shot at longs. The bottom below 1.2441 is located at 1.2419.

GBP/USD above 1.2588 trades 259 pips from 1.2588 to 1.2847. GBP/USD above 1.2847 trades 399 pips from 1.2847 to 1.3246. Historically from a very long term perspective, GBP/USD is comfortable to trade 1.2847 to 1.3246. In months down the road, GBP/USD has every opportunity to trade 1.2847 to 1.3246.

EUR/USD big break is found at 1.0924 to target 1.1037. Vital levels 1.0852, 1.0924, 1.0937, 1.0985. EUR/USD longs are safe above 1.0738. Below 1.0738 then back to 1.0600's and long again.

USD/JPY extreme prices are located at 140.45, 141.46 and 142.47. USD/JPY at 139.00's trades at the upper end to extremes. USD/JPY not only trades at maximums from 137.00's but lower averages trade severely overbought at 121.00's, 117.00's and 114.00's.

USD/JPY must cross below 137.42 and 135.89 then USD/JPY is gone to target 129.87 and challenge the vital break at current 127.60. Below 127.60 then targets 126.41 and final target at 123.69.

The ironic aspect to the USD/JPY forecast is the BOJ agrees as the BOJ methodoilogy is known long in advance.

The USD/JPY weekly target at low 138.00's traded to 138.75 from highs at 140.24. Monday, USD/JPY heads lower.

GBP/USD vs USD/JPY

The longest term perspective to GBP/USD Vs USD/JPY trades as GBP/USD 1.4074 Vs USD/JPY 124.18. Both GBP/USD and USD/JPY are longest term targets. Historically, the GBP/USD price is very low and USD/JPY extremely high.

GBP/USD by exchange rates alone is the best partner to USD/JPY in the G28 universe.

EUR/USD Vs USD/JPY trades as EUR/USD 1.4252 to USD/JPY 104.66. The alignment runs as EUR/USD 1.0963 Vs USD/JPY 137.61, EUR/USD 1.1163 Vs USD/JPY 135.61, EUR/USD 1.1563 Vs USD/JPY 131.61.

EUR/USD validates the USD/JPY break at 137.00's and 135.00's.

Author

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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