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USD/JPY: A Break Lower 134.60 Is A Sell Signal

Published 07/06/2022, 04:04 AM

Gold Spot lower at last, I have been calling for this move for a long time, but as always timing is impossible to know! Shorts at first resistance at 1811/15 certainly worked with a high for the day here. We hit 1802/00 for profit taking. The break below 1797 then targeted 1790 and support at 1786/83. Well done if you managed to short again on the break below 1797.

The break below 1780 is another sell signal.

Silver lower too as expected - we broke key support at 2050/45 for an important sell signal with a good bounce which held in between resistance at 1995/2000 and 2040/50 before the expected collapse towards my target of 1900, perhaps as far as 1880/60 today. Gold collapsed from resistance at 1811/15 targeting 1802/0, 1790 and support at 1786/83. The break below 1780 is a sell signal targeting 1763/60 and 1755/53. On further losses look for 1745.

Gains are likely to be limited with resistance at 1780/85. Shorts need stops above 1790.

Silver broke key support at 2050/45 for an important sell signal with steep losses as predicted to 2000 and 1950/45 and almost as far as 1900. Outlook remains negative. Next target is 1880/60 as we become oversold.

Gains are likely to be limited but a move above 1940 can target resistance at 1985/95. USD/JPY is either consolidating gains in the strong bull trend or forming a topping a head and shoulders pattern. Support at 135.00/134.80. Longs need stops below 134.60. A break lower is a sell signal targeting 134.30 and 133.70.

First resistance at 135.60/80. Shorts need stops above 136.00. Further gains obviously meet resistance at the high of 136.70/137.00. A break higher should be a buy signal in the bull trend, but I will wait to see what the daily candle looks like before calling it.

EUR/JPY totally confused me on Monday with that full recovery of Friday's losses. The break of support at 139.70/50 is a sell signal targeting 138.80/70, probably as far as 138.00/137.80. Further losses are likely eventually to 136.80/60.

First resistance at 139.55/75. Shorts need stops above 139.95.

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