SWISSQUOTE Daily Technical Report: USD/JPY bearish breakout at 102.36

In SWISSQUOTE’S Thursday short term technical trading report, they’re research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for EUR/USD and USD/JPY. Download the full report by clicking here.

EUR/USD: Intraday bullish reversal near the key support at 1.3296

• EUR/USD made a bullish intraday reversal yesterday (hammer). Coupled with the proximity
of the key support at 1.3296, the odds of a short term rebound are increasing. Resistances stand at 1.3444 and 1.3503 (05/06/2014 low). An hourly can now be found at 1.3333 (06/08/2014 low).

• In the longer term, EUR/USD is in a succession of lower highs and lower lows since May 2014. The downside risk is given by 1.3210 (second leg lower after the rebound from 1.3503 to 1.3700). A strong support stands at 1.3296 (07/11/2013 low). A key resistance lies at 1.3549 (21/07/2014 high).


USD/JPY: Bearish breakout at 102.36

• USD/JPY has broken the support at 102.36 (18/06/2014 high), suggesting further sideways move within the broad horizontal range between 100.76 and 103.02. An hourly support lies at 101.72 (see also the 61.8% retracement), whereas an hourly resistance can be found at 102.46 (05/08/2014 low).

• A long-term bullish bias is favoured as long as the key support 99.57 (19/11/2013 low) holds.
However, a break to the upside out of the current consolidation phase between 100.76 (04/02/2014 low) and 103.02 is needed to resume the underlying bullish trend. Another resistance can be found at 104.13 (04/04/2014 high), while a major resistance stands at 110.66 (15/08/2008 high).


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