Forex pairs to observe
Not much action in the market today, it’s been quit slow so far. At the moment im still looking at commodity dollars Vs. Yen, European countries Vs. Yen and Commodity dollars Vs Usd and I still believe the yen and the dollar are going to rally a bit further against other currencies. Keep in mind tomorrows fundamentals, especially the Euro which can really impact the pairs. lets take a closer look at some of the pairs.
Nzd.Jpy retraced all day today and is currently pushing up against resistance levels. I anticipate this pair to retrace a bit further and u-turn towards the south. I am looking for resistance levels to hold, a counter trendline break + bearish formation before I enter this pair.
Gbp.Jpy and Eur.Jpy
Gbp.Jpy came down and took out that major low around 126.51 area not too long ago. This pair is currently retracing and if it decides to match the left tip of the crown it has the possibility to retrace all the way up towards 129.70’s area (unlikely scenario) before u-turning south. It is important this pair doesn’t take out 130.07; if it does it will be a clear indication the bulls took back control and we should stop looking for short opportunities. At the moment I have the same set up as the pair above; im looking for a counter trendline break + resistance levels to hold around 128.29 ish before I decide to short this pair. I currently have a fib target of 124.34. Eur.Jpy is also currently retracing and is starting to push up against resistance with the downtrend with further resistance around 89.00, if these levels of resistance hold look for a further move down. I have a fib target for the downswing at 86.15; this is also where support levels can be found. Also keep in mind the uptrend, this pair might bounce off it and continue further north.
By: Elias Osman