USDJPY immediate recovery means the pair remain in a sideways trend

Daily Forecast - 05 October 2015

USDJPY Spot

USDJPY immediate recovery means the pair remain in a sideways trend & unfortunately there is little change in the levels until we see some clear direction. We spent 3 months in a sideways trend at the start of the year. Minor support at 119.70/65 then a buying opportunity at 119.40/35. Stop at 119.15. Be ready to sell a break below here to target September lows at 118.75/70. If we continue lower this week look for a test of good support at 118.50/45.

Above 119.70 targets minor resistance at 120.20/25 which could hold a rally. If we continue higher however look for a selling opportunity at 120.55/60. Stop at 121.90. A break higher targets September highs at 121.23/32. Further gains could target strong resistance at 121.90 for an excellent selling opportunity.

AUDUSD Spot

AUDUSD holding strong support at 7025/20 targets a selling opportunity at 7066/70. A break above 7085 however targets quite strong resistance at 7110/15 for an excellent selling opportunity.

Strong support at 7025/20. A bounce from here is expected but longs need stops at 6995. A break lower however targets 6963/60 & further losses risks a retest of late September lows at 6940/36. a break below here is a sell signal to test the September low at 6998/93.

EURUSD Spot

EURUSD first support at 1.1195/90 but below here targets 1.1150/45. If we continue lower 2 week lows at 1.1113/03 are good support in a ranging market so is worth trying longs with stops at 1.1080. Be ready to sell a break below September lows at 1.1085 for a breakout to target 1.1035 then 1.1015. We then look for strong support in the 1.1010/1.0980 area which should hold the downside at this stage.

Holding above 1.1195 targets first resistance at 1.1240/45. Shorts need stops above 1.1265. A break higher to target 1.1280 then strong resistance at 1.1320/25. Try shorts again with stops at 1.1355.

GBPUSD

GBPUSD traded in a sideways pattern for a week after we stopped the pair were stabilising. Holding above 1.5160 as I write targets 1.5180 then 1.5210 & perhaps as far as strong resistance at 1.5235/40, which looks likely to hold a rally again today. Shorts need stops at 1.5270. A break higher however targets resistance at 1.5315/20 for a selling opportunity with stops at 1.5350.

Below 1.5060 risks a slide to last week's low at 1.5010/05. From here down to May lows at 1.5090/85 is an excellent buying opportunity today. We could see a strong recovery from here but longs need stops at 1.5050. A break below is a sell signal therefore & targets 1.4990/80 then 1.4960/55.