Price & Time: Range to Resume in USD/JPY?
- USD/JPY at major inflection point
- Big pivots at 101.35 and 102.75
Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.
We have been focused on the first half of June as a potentially important time in USD/JPY as a cyclical relationship with the 2011 low has been expected to influence during this period. At the start of this window last week USD/JPY touched its highest level in a month before failing at key Gann resistance near 102.75. Since then the rate has come under fairly steady downside pressure. Our bias remains lower in the exchange rate while resistance at 102.75 remains intact. A close under 101.35 in the next few days is needed, however, to confirm the start of a broader decline and set the stage for a more serious push sub 100.75. Unexpected aggressive strength through 102.75 would suggest a possible cyclical inversion and turn attention immediately higher. We like selling in the next few days if the exchange rate settles below 101.35.
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USD/JPY Daily Chart: June 11, 2014
Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risk in the Sessions Ahead:
LEVELS TO WATCH
Resistance: 102.35(Gann), 102.75 (Gann)
Support: 101.75 (Gann), 101.35 (Gann)
Strategy: Sell USD/JPY
Entry: Sell USD/JPY on a close below 101.35
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail email@example.com. Follow me on Twitter at@KKerrFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.