Near-term Setups in EUR/USD and USD/JPY
- Update on trade setup we’ve been tracking inEUR/USD and USD/JPY
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EUR/USD Weekly Price Chart
We’ve been tracking this long-term slope in EUR/USD for months now with the break below 1.1605 shifting our focus lower in Euro. Yesterday we highlighted near-term down-trend support heading into the 1.13-handle with our focus on an exhaustion low in price.
Price registered a low at 1.1301 before reversing sharply- note that this region is defined by the confluence of former trendline resistance extending off the late-2015 swing high (red) and operative 50-line of the ascending pitchfork formation (blue). IF price is going to get a near-term recovery, this would be a good place to look- willing to play the long-side for now. Intraday trading levels remain unchanged from this week’s EUR/USD Scalp Report.
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USD/JPY Daily Price Chart
In this week’s Scalp report on the Japanese Yen, we highlighted bearish invalidation at 111.37 with our outlook weighted to the downside in the pair. Price registered a high at 111.43 before reversing sharply yesterday with USD/JPY breaking back below the weekly open in early US trade.
Bearish invalidation now lowered to 111.07 with our focus still on a drive in to a critical support confluence at, “109.80/91 where the 100 & 200-day moving averages converge on the 38.2% retracement of the March advance and pitchfork support”. Look for a reaction there - intraday trading levels remain unchanged from this week’s USD/JPY Scalp Report.
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-Written by Michael Boutros, Currency Strategist with DailyFX
Follow Michaelon Twitter @MBForex or contact him at email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.