USDJPY selling opportunity at 118.85/90 today

Daily Forecast - 28 January 2016

USDJPY Spot

USDJPY selling opportunity at 118.85/90 today & a good chance of a high for the day here yet again. This remains the most important resistance of the day but shorts need stops above 119.15. A break higher therefore is a short term buy signal & targets 119.27/30 then strong resistance at 119.70/75.

Failure to beat 118.85/90 as expected targets 118.50 then support at 118.35/32. A good area for short term profit taking but we could continue lower perhaps later in the week to target 118.20/16 then support at 117.93/88 for a buying opportunity. Stop below 119.60.

EURUSD Spot

EURUSD strong resistance at 1.0895/1.0900 is the most important of the day. A good chance of a high for the day again but shorts need stops above 1.0925. Just be aware that a break higher is a small buy signal & targets 1.0935/40 then 1.0965/70.

Failure to beat resistance at 1.0895/1.0900 re-targets 1.0860/65. If we continue lower look for 1.0825/22 which could hold the downside. Below here however is a sell signal to target 1.0800/05 then a retest of last week's low at 1.0777. A break below here this week targets 1.0765/62 then support at 1.0740/35 & a bounce from here likely.

GBPUSD January contract

GBPUSD outlook negative & could test important support at 1.4225/20. A break below does look quite likely however & targets very minor support at 1.4190, perhaps as far as 1.4170. If we continue lower look for 1.4155/50 then 1.4125/20.

First resistance at 1.4275/80 could hold a rally but above here we could target 1.4298/99, perhaps as far as a selling opportunity at 1.4345/50. Again shorts need stops above 1.4380. A break higher is a buy signal however & sees 1.4355/50 act as support to target 1.4420/25 then 1.4445/50.

EURGBP Spot

EURGBP holding above 7630 re-targets 7650/55 & 7665/66. A break above here today then targets 7690 & minor resistance at 7705. If we continue higher look for 7722/25 then the 7755 high.

Below 7630 risks a slide to the best support of the day at 7595/85. Try longs with stops below 7570. A break lower targets 7550/46 then 7525/20.

AUDUSD Spot

AUDUSD sold off from 7075/78 to 6998. We do have a bullish inverse head & shoulders pattern but I thought yesterday would see a false break higher because we were overbought short term. This sell off may offer an excellent buying opportunity before a sustained break, perhaps next week. Below 7020/15 targets minor support at 7000/6999 then 6984/80 but the best support of the day is 6958/53. Hopefully we will hit this target for a buying opportunity with stops below 6925.

Holding above 7020/15 targets 7040/44. Above 7950 allows a retest of 7075/78. We need a close above 7950 for a confirmation breakout to target 7102/04 then very strong resistance at 7135/40 for a selling opportunity.

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