Daily FX Technical Commentary

Daily Forex Technicals | Written by Mizuho Corporate Bank
EURUSD
Comment: Bouncing neatly from the 38% Fibonacci retracement and the 9-day moving average sneaking up to 1.3790. There is a small chance of getting a weekly close above 1.4100 this week which should increase bullish momentum although serious stops are unlikely to be triggered until we see a close above 1.4200. Strategy: Buy at 1.4000, adding to 1.3900; stop well below 1.3790. Short term target 1.4050, then a lot more with a first measured target at 1.4200 then 1.4550.Direction of Trade: →↗
Support Resistance
1.3925 " 1.4015
1.3885 1.4051**
1.3790* 1.4125
1.3725 1.4200*
1.365 1.43
GBPUSD
Comment: Pushing higher again where a weekly close above 1.6100 will probably set off another round of serious short-covering. Open interest is still roughly half the 2007/2008 peaks. Implied volatility is likely to trade higher next week. Strategy: Buy at 1.6035, adding to 1.5950; stop well below 1.5750. Add to longs on a sustained break above 1.6100 for 1.6200 short term, then 1.6500.Direction of Trade: →↗
Support Resistance
1.5918 " 1.6044
1.5852 1.6087/1.6100*
1.5757 1.6200*
1.57 1.63
1.5650* 1.64
USDJPY
Comment: Difficult and messy as we push into the middle of a very large Ichimoku 'cloud'. Hopefully the rally will stall around the 26-day average at 96.83, under yesterday's high at 97.24. Note that momentum is neutral and open interest is just off its lowest in five years. Strategy: Attempt small shorts at 96.50, adding to 97.00; stop above 97.35. First target 96.00, then 95.00Direction of Trade: →
Support Resistance
96.25 " 97.05
96 97.24*
95.5 97.55
95.24 97.85
94.95* 98.35