USD/JPY broke support at 106.50/30 for a sell signal but kindly bounced to 106.43 to allow shorts to be entered before targeting 106.00/105.90 – as I write we bottomed exactly here.
EUR/JPY we wrote: breaking support at the 115.55/45 swing low is an obvious sell signal for today targeting 114.90/80 & 114.40/30...We hit the 114.40/30 target and bottomed exactly here as I write overnight. The outlook remains negative.
Today’s Analysis
USD/JPY holding as I write 106.00/105.90. A break lower targets 105.70/60 before support at 105.30/20 for some profit-taking on shorts.
Try shorts at 106.40/50 with stops above 106.60. A break higher targets a selling opportunity at 106.95/107.05 with stops above 107.25. A break higher is a buy signal.
EUR/JPY severely oversold in the short term but gains are likely to be limited with first resistance at 114.85/95. Try shorts at 115.20/30 with stops above 115.50.
Holding first resistance at 114.85/95 targets 114.40/30, perhaps as far as 114.00/113.90 today.
Trends
- Weekly outlook is neutral
- Daily outlook is negative
- Short Term outlook is negative