USD/JPY: A break above 111.05 is a medium term buy signal

Jason Sen DayTradeIdeas.co.uk

USD/JPY, EUR/JPY, CAD/JPY

USDJPY held best support at 109.15/05 & beat 6 month trend line resistance at 110.10/20 for a buy signal targeting 6 week trend line resistance at 110.50/60.

EURJPY topped exactly at resistance at 133.40/60 then bottomed exactly at mega important head & shoulders neck line plus 1 year trend line support at 132.70/50.

CADJPY held resistance at 9050/60 but bottomed exactly at best support at 9020/00.

Which way will the pair break?

Daily analysis

USDJPY beat 6 week trend line resistance at 110.50/60 so holding above here is a buy signal targeting the 2021 high at 110.90/95. A break above 111.05 is a medium term buy signal. Hold longs for a swing trade.

First support at 110.60/50. Longs need stops below 110.30. Best support at 109.45/35. Longs need stops below 109.20.

EURJPY bottomed exactly at mega important head & shoulders neck line plus 1 year trend line support at 132.70/50 as predicted. Longs need stops below 132.35. A lower is an important longer term sell signal initially targeting 131.85 then 131.25/15.

Longs at 132.70/50 target 133.015/25, perhaps as far as resistance at 133.40/60. Shorts need stops above 133.75. A break higher is a short term buy signal targeting 134.00/10. A break above 134.20 is a medium term buy signal.

CADJPY bottomed exactly at best support at 9020/00. Longs need stops below 8990. A break lower is a sell signal targeting 3 week lows at 8960/55, eventually 8925 & probably as far as 8900/8890.

First resistance at 9050/60. Above 9080 however can then retest the high at 9110/20. A break higher is a medium term buy signal.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.