Resistance: 1.6183 moderate / 1.6214 moderate / 1.6240 minor
Support: 1.6153 minor / 1.6126 moderate / 1.6095 minor
In the end daily candlesticks in Cable show more argument for a sharp pull back with Tuesday’s ‘gravestone doji’ now joined by a ‘bearish engulfing’ of the failed attempt at a new high Wednesday. Daily indicators now has a confluence of bears with stochastic showing a new bearish crossover and the macd’s clearly off overbought areas. we could be seeing the start of a mean reversion play. In 4H charts we have stochastic already oversold and macds looking to push under the zero line. Note we have triggered a double top from the 4H picture. In hourly charts we have stochastic coming off oversold levels while macd is at risk of a bullish crossover. For now look for a push through the New York congestion floor at 1.6153 to trigger a follow through sell off, pattern target for the double top is at 1.6050.
Resistance: 157.37 moderate / 157.56 moderate / 157.81 minor
Support: 156.77 moderate / 156.28 moderate / 155.90 minor
GBPJPY triggered a multiple top in the daily charts Thursday dragging prices down into the daily EMA lines while indicators now show stochastic in oversold levels as macd’s continue to head down to the zeroline. Note our pattern target calls for a sell-off to 154.67. From the lower time frames we have 4H indicators showing macd’s below the zeroline and dropping further while stochastic is oversold though at risk of taking a peak above the 20 threshold. hourly charts for their part still has a confluence of bears with stochastic poised to push oversold and macd’s below the signal and under zero. For now look for a push below the 34DEMA at 156.77 to trigger a further sell-off our objective the 55D EMA at 155.61 possibly on to the pattern target in the coming week.
Resistance: 0.9734 moderate / 0.9457 minor / 0.9486 minor
Support: 0.9393 moderate / 0.9372 moderate / 0.9354 minor
Thursday saw Aussy with a tighter range though still a bullish candle keeping the idea of a push to the psychological 0.9500 going as we continue our bounce off the 38.2 Fib retracement for the September rally. Among indicators we have stochastic poised to push overbought while macd is also looking for a bullish crossover. note this is also a bounce off the daily EMA lines. From the lower time frames we are seeing a confluence of buys as stochastic in both 4H and hourly charts are moving for the overbought areas even as we see new bullish crossovers out of the macd indicator. For now we are looking for a push through the weeks highs at 0.9434 for a surge to the 0.9500 area.
Resistance: 97.30 moderate / 97.51 minor / 97.77 moderate
Support: 96.86 moderate / 96.38 minor / 95.92 moderate
In the end all the whipsaw in USDJPY intraday charts turned out to be a daily high wave spinning top suggesting a loss of bearish momentum even as indicators continue to argue the sell side. We have prices under bearish daily EMA lines with dead crosses from earlier in the week while stochastic has pushed oversold and macd’s are dropping. In intraday charts we are also seeing mixed signals as stochastic is poised to push higher failing to see oversold areas while macd see a bear cross. Hourly charts for their part has sell signals stochastic looking to push oversold. Given the high wave spinning top the preferred course of action is to remain sidelined as we risk a technical correction with the end of the week. A close below 96.83 however should see us with follow through weakness while a close above 97.30 could see a technical correction with the weekend.
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