USDJPY heading for strong resistance again at 118.80/85

USDJPY

USDJPY heading for strong resistance again at 118.80/85. Try shorts with a stop above 119.00. A break above the five-day range today is positive, so be ready to go with a break to target 119.30/35 and perhaps as far as trend line resistance at 119.75/80. A good chance of a high for the day here but if we continue higher this week look for 119.88/96.

Failure to beat strong resistance again at 118.80/85 targets 118.20/25 then support at 117.75/70. If however we continue lower look for a retest of support at 117.35/25. On a break lower this week look for good support at 117.00/96. Try longs with stops below 116.80.

EURUSD

EURUSD will need to hold above 1.1230/35 today to build the short term recovery & retest 1.1290/95. Above here today meets resistance at 1.1315/20. A high for the day possible so try shorts with stops above 1.1340. Be ready to go with a break higher however using 1.1320/15 as support to target 1.1375/85. If this does not hold the move today, we could push on to very strong resistance at 1.1445/55 for an excellent selling opportunity with stops above 1.1480.

Failure to hold above 1.1230/35 risks a slide back to 1.1195/90 then 1.1150/00 before a retest of two-day lows at 1.1113/1.1098. Failure here this week targets 1.1045 then 1.1010/1000. If we continue lower look for 1.0965/62 then 1.0930 and 1.0907/05. A break below here risks the move as far as 1.0845.

AUDUSD

AUDUSD meets strong resistance at 7940/45 again today. Shorts need a stop above 7970. Be ready to go with a break higher using 7950/7940 support to target 7990/7995. Exit longs here and try shorts at 8015/8020 with a stop above 8040. An unexpected break higher however then targets 8070/75.

Failure to beat strong resistance at 7940/45 could trigger a move back to 7900/7895. If we continue lower look for 7873/69 then a retest of yesterday's low & support at 7850/45. Be ready to go with a break lower this week to target 7800 & perhaps as far as 7787.

GBPUSD

GBPUSD will need to hold above 1.5070 to continue the recovery and beat today's first resistance at 1.5105/10 to target strong resistance at 1.5145. A good chance of a high for the day here to try shorts with stops above 1.5180. An unexpected break higher would then target 1.5200/10.

Failure to hold above 1.5070 triggers a drift lower to 1.5055 then support at 1.5035/25. A low for the day is possible here but longs need a stop below 1.5000. A break lower targets 1.4975/70 then the lows at 1.4948. Just be aware that a break lower this week targets 1.4945/35 then support at 1.4870/60. If we continue lower however look for a test of 2013 lows & good support at 1.4829/12.