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Price & Time: Important Time For USD/JPY

By , Sr. Currency Strategist
07 February 2014 16:50 GMT

Talking Points

  • EUR/USD rebounds off key Gann level
  • USD/JPY holds Fibonacci support
  • GOLD nearing critical resistance zone

Unfamiliar with Gann Square Root Relationships? Learn more about them here.

Weekly Foreign Exchange Price & Time at a Glance:

Weekly Price & Time Analysis: EUR/USD

WPT_FEB_7_body_Picture_3.png, Price & Time: Important Time For USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

  • EUR/USD traded to a new multi-week low earlier this week before rebounding off the 1x1 Gann angle line of the 2013 low near 1.3500
  • Our trend bias is lower in the Euro while below the 2013 closing high near 1.3800
  • The 1.3500 area remains a key downside pivot with weakness below needed to signal a resumption of the broader decline
  • A minor cycle turn window is seen early next week
  • Only a daily close back over 1.3800 would turn us positive on the Euro again

Weekly EUR/USD Strategy: Like the short side while under 1.3800.

Instrument

Support 2

Support 1

Spot

Resistance 1

Resistance 2

EUR/USD

*1.3500

1.3540

1.3615

1.3710

*1.3800

Weekly Price & Time Analysis: USD/JPY

WPT_FEB_7_body_Picture_2.png, Price & Time: Important Time For USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

  • USD/JPY fell to its lowest level since late November earlier this week before finding support at the 100.80 200% extension of the mid-January advance
  • Our broader bias is now negative in the rate while below 104.40
  • The 100.80 level is now a key pivot that needs to be breached soon on a daily close to undermine the potential positive cyclicality of this week
  • A minor cycle turn window is seen early next week
  • A weekly close back over 104.40 would turn us positive again on USD/JPY

Weekly USD/JPY Strategy: We like the short side in USD/JPY while below 104.40.

Instrument

Support 2

Support 1

Spot

Resistance 1

Resistance 2

USD/JPY

*100.80

101.35

102.20

103.40

*104.40

Weekly Price & Time Analysis: GOLD

WPT_FEB_7_body_Picture_1.png, Price & Time: Important Time For USD/JPY

Charts Created using Marketscope – Prepared by Kristian Kerr

  • XAU/USD remains in consolidation mode after last week’s failure near the 38% retracement of the August to January decline near 1276
  • Our broader trend bias remains positive in the metal while above the 1x1 Gann angle line of the 2013 closing low near 1223
  • A convergence of Gann and Fibonacci levels between 1276 and 1286 needs to be overcome to signal the next leg higher
  • A cycle turn window is seen around the second half of the month
  • A daily close under 1223 would turn us negative on the metal

Weekly XAU/USD Strategy: Like being long while over 1223.

Instrument

Support 2

Support 1

Spot

Resistance 1

Resistance 2

XAU/USD

*1223

1249

1262

*1286

1300

--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com

This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved

To receive other reports from this author via e-mail, sign up to Kristian’s e-mail distribution list via this link.

To contact Kristian, e-mail kkerr@fxcm.com. Follow me on Twitter @KKerrFX

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07 February 2014 16:50 GMT