Trading Outlook for Yen, NZD-crosses, Crude Oil & More
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USD/JPY is in danger of breaking important support along with Yen-crosses at interesting cross-roads themselves. Aussie and Euro vs. Kiwi both hold intriguing set-ups, especially the former. US oil showing no life at important slope.
- USD/JPY breaching significant trend-line, Yen-crosses examined
- AUD/NZD path of least resistance lower, EUR/NZD coiling up
- Crude oil weak on important slope dating back to July
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USD/JPY breaching significant trend-line, Yen-crosses examined
On a daily basis, USD/JPY is trading below a trend-line rising up from September 2012, however; a break on the weekly time-frame will bring more conviction given how long-term the threshold is. A solid break could get it rolling downhill towards 100.
EUR/JPY continues on the path of least resistance towards the low-end of a range formed late last year, with the 13150/100-area targeted in the near-term. CHF/JPY is sitting very near a trend-line from September 2016 along with the 200-day, an important spot to watch here just south of 11500.
A break of 8400 in AUD/JPY could spur another round of selling, but as is always the case, it’s support until broken. GBP/JPY has a really big spot down in the 14800/700 zone, with big horizontal support, trend-line from October 2016, and the 200-day all arriving in that area.
USD/JPY Daily Chart
EUR/JPY Daily Chart
GBP/JPY Daily Chart
AUD/NZD path of least resistance lower, EUR/NZD coiling up
AUD/NZD recently broke the neckline of a head-and-shoulders pattern on the daily chart, and is now putting in a descending wedge on the 4-hr time-frame. For more details check out the trade set-up discussed earlier this morning.
EUR/NZD continues to coil up into a wedge, with a break lower in-line with the decline off the November high seen as the most likely scenario. This is a set-up we continue to monitor and will take a look at in future webinars.
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AUD/NZD 4-hr Chart
Crude oil weak on important slope dating back to July
Today, we did an update on the technical backdrop in crude oil we discussed in yesterday’s session. It continues to act poorly at the slope from July, a line of support it held on several occasions during the fall but is now providing little lift. Risk is growing quickly that it will give way; 56/55 targeted if it breaks.
Crude Oil Daily Chart
We also looked at USD/CAD, GBP/USD, EUR/USD and a few other cross-rates. For full technical considerations, please see the video.
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.