USDJPY first resistance at 123.35/39

Daily Forecast - 03 December 2015

USDJPY Spot

USDJPY first resistance at 123.35/39 again today but above here we could re-target 123.67 November highs. A break above here is another positive signal to target 123.77 then 123.96/99.

Failure to beat first resistance at 123.35/39 risks a slide to first support at 123.15/10, perhaps as far as better support at 123.00/95. A bounce from here is possible but longs need stops below 122.80. A break below 122.80 could target 122.60 but look for a buying opportunity at 122.40/35.

EURUSD Spot

EURUSD bounced very sharply from 1.0560/56 lows after a bottom at 1.0549. Resistance at 1.0635/38 is the main challenge for bulls again today. However a break higher not out of the question & targets 1.0655 then strong resistance at 1.0685/90. Watch for a high for the day as we become overbought short term. Shorts need stops above 1.0705. Be ready to buy a break above here however to target 1.0725/29 then an excellent selling opportunity at 1.0775/79.

Holding below 1.0635/38 risks a slide to 1.0590 & perhaps a retest of 1.0555/49 lows. Obviously a sustained break below here is a sell signal & targets April lows at 1.0529/19. Just be aware that further losses target the year low seen in March at 1.0460/56.

AUDUSD Spot

AUDUSD has broken first support at 7298/95 to target strong support at 7270/65. Try longs with stops below 7245. A break lower however targets 7235 then strong support at 7220/15 for a buying opportunity. Longs need stops below 7200.

A move back above 7300 may allow a recovery towards 7330/35. Try shorts again at 7330/35 with stops at 7350. Be ready to buy a break above here however to target 7377/82. This is quite strong resistance in overbought conditions but a break higher targets August highs at 7430/39.

GBPUSD

GBPUSD collapsed to our lower target of 1.4890/85. Clearly oversold conditions are being ignored. Trend line resistance at 1.4965/70 looks like the main challenge for bulls today but with further resistance at November lows of 1.4990 we could top out anywhere within this band. However on a break higher look for a selling opportunity at 1.5035/40. Shorts need stops above 1.5060.

On the downside watch the 1.4890/85 level although don't expect much support here today. Be ready to sell a break below to target 1.4855/51. If we continue lower look for 1.4810/05. Further losses target 1.4775.