USD/JPY we wrote: outlook negative as we hold below the 200 day moving average resistance at 108.70/60. Shorts worked perfectly on the collapse to our target and support at 107.75/70 EUR/JPY broke strong support at 121.10/00 to target 120.60/50 then hit strong support at 120.15/05. This is key support for today.
USD/JPY lower as predicted to our target of 107.75/70 and we bottomed exactly here. The outlook remains negative so a break below 107.60 is the next sell signal targeting 107.45/40 and 107.10/05.
Gains are likely to be limited with the longer term outlook negative. First resistance at 108.20/30 then a selling opportunity at 108.50/60, with stops above 108.70.
EUR/JPY buying opportunity at 120.15/05 with stops below 119.90. A break lower is a sell signal targeting 119.70/65 and 119.30/20.
Longs at 120.15/05 target 120.60/70 and strong resistance at 121.00/10 for some profit taking.
Trends
Weekly outlook is neutral
Daily outlook is neutral
Short Term outlook is negative