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USD/JPY 240min Chart
Last week we noted that USDJPY was testing a critical near-term resistance zone at 114.30/50 with a favored break below parallel support extending off the September lows needed to shift the focus lower in the pair. A late-week break has USDJPY trading lower with the decline largely holding within this near-term descending channel formation. The focus remains lower while below the weekly open at 113.45 with near-term support targets eyed at 112.26 and the 38.2% retracement / channel support at 111.90.
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- A summary of IG Client Sentiment shows traders are net-long USDJPY- the ratio stands at +1.08 (52.0% of traders are long) – Weak bearishreading
- Long positions are 2.9% lower than yesterday and 0.3% lower from last week
- Short positions are 3.9% lower than yesterday and 23.1% lower from last week
- We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDJPY prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bearish contrarian trading bias.
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GBP/USD: The focus is on a pending breakout in sterling as the monthly opening-range continues to take shape just above a critical slope support barrier. The immediate range of interest is 1.3063-1.3221 with a topside breach favored. I highlighted this setup in today’s Scalp Report.
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ETH/USD 240min
Ethereum prices reversed off our initial resistance target today at 338. Interim support at 321 with the focus remains higher while above the November open at 304. A breach higher targets subsequent resistance objectives at 349/50 backed closely by 355 & the 61.8% extension at 362.
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---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex or contact him at mboutros@dailyfx.com
https://www.dailyfx.com/free_guide-tost.html?ref-author=Boutros
