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JPY Resumes Technical Collapse

Published 02/05/2016, 06:17 AM
Updated 07/09/2023, 06:31 AM

USD/JPY

The USD/JPY has resumed its collapse as we expected since the opening of this week, reaching 116.80 easily and it is moving steadily towards 116.15, which is the final target of our sell setups.

USD/JPY

However, we prefer to close any opened positions, as we are waiting for NFP data release today and that may cause very sharp fluctuation although we remain bearish.

On the upside, 117.75 may cap corrective upside rallies over intraday basis, while coming below 116.00 will be short signal for short-term traders.

Support: 116.50-116.00-115.60

Resistance: 117.00-117.30-117.80

Direction: Bearish, but we will avoid trading the pair now

USD/CHF

The USD/CHF pair has moved sharply to the downside as expected, reaching all targets we defined with the start of the week, while yesterday’s sell setup has reached its final target at 0.9945.

USD/CHF

Now, the pair is now very close to important Fibonacci support at 0.9915 and that might cause fluctuation that we want to avoid ahead of the NFP and weekly closing; noting that, we are content with the profit we made from shorting the pair this week, although we remain bearish over short-term basis.

Support: 0.9915-0.9855-0.9790

Resistance: 0.9960-1.0000-1.0050

Direction: Bearish below 0.9915, but we will avoid trading the pair now

EUR/USD

EUR/USD moves above 61.8% Fibonacci at 1.1125 and that opens the door up towards 76.4% Fibonacci at 78.6% as seen in the graph.

EUR/USD

ADX is positive and also moving averages; thus, the bullishness remain valid despite the overbought on RSI.

We may wait for good entries to avoid the sharp fluctuation.

Support: 1.1125 – 1.1040 – 1.1005

Resistance: 1.1200 –1.1285 – 1.1385

Direction: Bullish

GBP/USD

After reaching the target of 1.4660, GBP/USD failed to breach this level and started to edge lower towards 38.2% Fibonacci at 1.4525 that is close to SMA50.

GBP/USD

Although moving averages are positive, but ADX remains negative, offering a contradiction between technical factors.

We will be neutral now, waiting for an actionable setup to present itself to us.

Support: 1.4500 – 1.4450 – 1.4380

Resistance: 1.4600 – 1.4660 – 1.4755

Direction: Neutral

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