Resistance: 131.47 moderate / 131.64 moderate / 131.86 minor
Support: 131.13 minor / 130.97 moderate /130.62 moderate
EURJPY saw new lows in Monday trade after an earlier whipsaw was unable to hold the upside as equity markets dropped across the globe. Daily indicators now have a confluence of bears from the big picture with stochastic in oversold levels while macd has also just pushed below the zero line. In intraday charts we are seeing a confluence of bears with stochastic looking to push back into oversold levels from the 4H picture while macds are also dropping and are below zero. Hourly charts for their part has mixed signals with stochastic coming off oversold areas while macd is flat below the signal line. For the moment there is little sense of urgency though we prefer looking for shorts from under the daily pivot should he equity markets begin to falter further. Any close above 131.47 could alter the scenario for a technical bounce. Note we have a pattern of whipsaws where the lows kept getting lower along with the declining highs.
Resistance: 96.84 moderate / 97.05 moderate / 97.30 moderate
Support: 96.56 minor / 96.28 minor / 95.92 moderate
USDJPY started the week on very bearish footing with new lows from our rejection off the daily EMA lines last week while indicators suggests a continuation of our bear trend. Daily stochastic is pushing further into oversold areas while macd is heading lower and the EMA lines come-off dead crosses. In the 4H picture we have stochastic reentering oversold levels while macd has a new dead cross this given the bearish breakout from the previous candle. Hourly charts for their part are mixed as stochastic comes off oversold areas and macds drop while we see a series of spinning tops. For now the immediate view calls for a follow through sell-off from just under the 98.64 daily central pivot as equity markets continue to slide. Note that the longer we take to sell-off the greater the risk of a pullback, buys can also be taken on a close above 96.84 at the open of European markets.
Resistance: 0.9458 moderate / 0.9483 minor / 0.9528 moderate
Support: 0.9420 minor / 0.9402 minor / 0.9375 moderate
After easing off early in Asian trade we eventually saw Aussy rally up in European trade to push for the swing highs at 0.9458 with daily indicators showing an overbought stochastic and macd’s seeing a new bullish cross as well. Note we are still looking for a follow through bounce off the 38.2 fib retracement for the September rally and have a valid inverted head and shoulder with 0.9590 as its pattern target. In the lower time-frames we have a mixed view in 4H charts with stochastic looking to push overbought and macds flat just under the signal line. Hourly charts for their has a confluence of buys with stochastic coming off oversold levels and macds poised at a new bullish crossover. Note we have Australian Job Advertisements and the Business Confidence figures up for release at 0030GMT with good reads likely to see us with some follow through rally.
Resistance: 1.6098 moderate / 1.6122 moderate / 1.6156 moderate
Support: 1.6074 moderate / 1.6049 minor / 1.6025 moderate
Cable saw a close just under the 38.2 Fib retracement of our sell-off from last weeks highs, a moderate resistance, this following a bounce of the 21DEMA. We turned out slightly short of the daily averages on lack of impetus monday. From indicators we are currently seeing a mixed signal from the daily charts as stochastic comes off oversold levels and macds are dropping. Note we continue to see good numbers out of the UK argument for strength in GBP. From the 4H picture we have a confluence of buys as macd crosses up while stochastic is pushing for overbought levels. Hourly charts for their part has stochastic with a bullish crosses and macd’s also heading up. for the moment our more immediate risk is fora bullish breakout. Coupled with good economic numbers we prefer looking for a break of 1.6098 as European markets open later and use the move as our entry.
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