Talking PointsForeign Exchange Price & Time at a Glance
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY is in consolidation mode below 122.00
- Our near-term trend bias is positive while above 120.00
- A move through 122.00 is now needed to signal that the exchange rate is emabrking on a new leg higher
- A minor turn window is eyed around the middle of next week
- A close below 120.00 would turn us negative on USD/JPY
USD/JPY Strategy: Like the long side while above 120.00
|
Instrument |
Support 2 |
Support 1 |
Spot |
Resistance 1 |
Resistance 2 |
|
USD/JPY |
*120.00 |
120.80 |
121.00 |
121.65 |
*122.00 |
Charts Created using Marketscope – Prepared by Kristian Kerr
- GBP/USD touched its lowest level in almost a year and a half yesterday before finding support around the 5th square rooot relationship of the February high near 1.4925
- Our near-term trend bias is lower in Cable while below 1.5140
- Traction under 1.4925 is now needed to set off a new leg lower in the pound
- A very minor turn window is seen tomorrow
- A close above 1.5140 would turn us positive on GBP/USD
GBP/USD Strategy: Like the short side while below 1.5140.
|
Instrument |
Support 2 |
Support 1 |
Spot |
Resistance 1 |
Resistance 2 |
|
GBP/USD |
*1.4925 |
1.4950 |
1.5000 |
1.5050 |
1.5140 |
Focus Chart of the Day: S&P 500
The S&P 500 has come under some steady pressure over the past week or so. It is too early to tell the significance of the high recorded late last month, but it is worth noting that it did come during a nice convergence of several short-term cyclical relationships. The next few weeks should be very telling as the period leading into quarter-end often times has a funny way of seeing uptrends in equities try to re-assert themselves. Take a look at the price action from last December in the SPX if you need a reminder. If stocks can’t turn up during this key period then this will be an important change in behavior that signals a more significant correction is unfolding. The 200-day moving average just above 2000 in the SPX is likely to be a critical support/pivot area.
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com