Daily Forecast - 20 August 2014
USDJPY
USDJPY has now beaten 7 month trend line resistance at 102.70/75 as we look to target July/August highs at 103.02/08. Overbought short term so we should struggle here but yesterday's breakout was a very bullish signal. We could therefore continue higher this week & reach for 103.35/40. Any further gains may go as far as 103.71/78.
Immediate support & a buying opportunity at 102.70/75. However an unexpected break lower meets very strong support at 102.50/44. Exit shorts & try longs with little chance of further losses today, but with stops below 102.30.
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