In Swissquote’s Friday 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 GBP/JPY. To view and download the entire report, click here (PDF).
USD/JPY: Rushing towards the major resistance at 110.66.
• USD/JPY continues its steep advance and is now close to the major resistance at 110.66. Given the overextended rise, the odds to see a short-term correction are increasing. Hourly supports can be found at 108.37 (intraday low) and 107.39 (12/09/2014 high).
• A long-term bullish bias is favoured as long as the key support 100.76 (04/02/2014 low) holds. The recent new highs confirm a strong underlying bullish trend. Despite a likely pause near the major resistance at 110.66 (15/08/2008 high), an eventual break to the upside is favoured. Another resistance can be found at 114.66 (27/12/2007 high).
GBP/JPY: Pushing higher
• GBP/JPY has broken the key resistance at 175.37 (03/07/2014 low), confirming the underlying bullish trend. Hourly supports now lie at 177.72 (intraday low) and 176.88 (intraday low).
• In the long-term, the break of the major resistance at 163.09 (07/08/2009 high) calls for further long-term strength. The resistance at 179.17 (see also psychological threshold at 180.00) is challenged. Other resistances can be found at 183.98 (50% retracement of the 2007-2009 decline) and 197.45. Strong supports lie at 172.99 (16/09/2014 low) and 169.51 (11/04/2014 low).
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