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Here's an update on a few of the setups we’ve been tracking this week. Find a detailed, in-depth review of these setups and more in this week’s Strategy Webinar.
GBP/USD Weekly Chart
Earlier this week I highlighted a definitive break-out in the British Pound with the pair surging through slope resistance as the advance extends to fresh 19-month highs. The rally is now eyeing resistance targets at 1.4356 backed closely by the upper median-line parallel which converges on the 200-week moving average just below the 1.44-handle. Both these targets represent areas of interest for near-term exhaustion. Bottom line: the focus remains higher while above 1.3952 with a breach targeting the 50% retracement of the Brexit decline at 1.4571.
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USD/JPY Weekly Chart
Price slipped below confluence down-trend support this week and a clear break of the monthly opening range keeps the focus lower heading into the close of the month. That said, price seems a bit stretched here and we’re on the lookout for a rally to fade while below 109.55 targeting 107.84 & 107.50. I highlighted this setup in today’s Scalp Report.
AUD/JPY Daily Chart
AUD/JPY is has set a well-defined monthly opening range and we’ve been trading the short-side since the 1/23 outside-day reversal off the 89.03/16 resistance range. Price is attempting to break below monthly / yearly open support today with our focus on a reaction down at 87.28- a break below this threshold would suggest a larger correction is underway with such a scenario targeting subsequent support objectives into the 86-handle. Levels / outlook remain unchanged from this week’s AUD/JPY Scalp Report.
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---Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex or contact him at firstname.lastname@example.org