USD/JPY breaks lower and sees minor support at recent lows at 105.20/10. Be ready to sell a break below 105.00 targeting 104.75/70, 104.35/30 and the July low at 104.20/16.
A selling opportunity at 105.90/106.00 with stops above 106.20. An unexpected break higher is a buy signal initially targeting 106.50/60.
EUR/JPY break below 125.30 was our sell signal targeting 124.90/80 and important head and shoulders neckline support at 124.40/30 (nearly there). A break lower is a medium-term sell signal targeting 123.40/30 and 122.70/60, perhaps as far as a buying opportunity at 122.30/20, with stops below 121.90.
A bounce from 124.40/30 is very possible because we are oversold in the short term, targeting 124.75 and 125.00/10. Try shorts at 125.45/55 with stops above 125.70.
(Shorts here are more likely to see a break below the trend line on the next test).
Trends
- Weekly Outlook Neutral
- Daily Outlook Neutral
- Short Term Outlook Neutral
