Swissquote Daily Technical Report: USD/JPY – Digesting its recent rise

In Swissquote’s Wednesday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for USD/JPY and AUD/USD. To view and download the entire report, click here (PDF).

USD/JPY: Digesting its recent rise

• USD/JPY has failed to hold above the key resistance at 104.13, suggesting a weakening short-term buying interest. A break of the hourly support at 103.50 (22/08/2014 low) would confirm a deterioration of the short-term technical structure. Another support lies at 102.91 (intraday low). A resistance now stands at 104.49 (25/08/2014 high).

• A long-term bullish bias is favoured as long as the key support 100.76 (04/02/2014 low) holds. The break to the upside out of the consolidation phase between 100.76 (04/02/2014 low) and 103.02 favours a resumption of the underlying bullish trend. Strong resistances can be found at 105.44 (02/01/2014 high) and 110.66 (15/08/2008 high).

Await fresh signal.

AUD/USD: Monitor the resistance at 0.9345

• AUD/USD made an intraday bullish reversal (hammer) last Thursday, confirming significant buying interest near the support at 0.9239. Monitor the resistance at 0.9345, as a break would validate a short-term double-bottom formation with a target at 0.9450. Another resistance lies at 0.9374. An hourly support can be found at 0.9272 (26/08/2014 low).

• In the longer term, prices are consolidating within the range defined by the key support at 0.9206 (see also the 200 day moving average) and the key resistance at 0.9461 (10/04/2014 high)/0.9505. The current succession of lower highs since early July 2014 favours a bearish bias.


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