Previously, we wrote that USD/JPY risks forming a double top for a sell signal pattern, after we failed to sustain a break above 111.00. Yesterday we dipped to 10 pips above first support at 110.30/20.
EUR/JPY has sold off from very strong resistance at 132.50/60. Shorts are working!! As we wrote previously, further losses look likely targeting 131.25/05…The pair hit this target and bottomed exactly here.
CAD/JPY is holding strong resistance at 9020/30 and hitting our targets of 8990/80 and 8940/20. We bottomed exactly here but the outlook remains negative.
Today’s Analysis
If USD/JPY fails to hold above 111.00, it risks the formation of a double top sell signal. The pair is edging slowly lower to 110.60/55 and almost as far as first support at 110.30/20. Below 110.00 look for 109.75/65. Gains are likely to be limited with minor resistance at 110.60/70. Strong resistance at 111.00/111.10. A break above 111.20 kills the double top sell signal and is a buy signal initially targeting 111.40/50 then 111.70/80.
With EUR/JPY, we are short at very strong resistance at 132.50/60 and hitting the next target of 131.25/05 perhaps as far as minor support at 131.10/00 today. A break below the 100 day moving average at 130.90/80 is a sell signal targeting 130.60/50 and 130.20/00. A break below here is a sell signal targeting 129.80 and support at 129.50/40.
Gains are likely to be limited with minor resistance at 1.3180/90. Above 132.00, however, allows a recovery towards very strong resistance again at 132.50/60. Shorts need stops above 132.80. A break higher is a buy signal targeting 133.20/30, perhaps as far as 133.55/65.
CAD/JPY is holding strong resistance at 9020/30 and hitting our targets of 8990/80 and 8940/20. Further losses look likely to 8880/70. Gains are likely to be limited with minor resistance at 8955/65. Above 8980, however, allows a recovery towards strong resistance again at 9020/30. A break above 9040 targets 2 week highs at 9070/80.
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