USDJPY’s pullback from 109.10-20 is less likely to signal the pair’s weakness unless a sustained drop beneath three-week-old upward slanting trend-line, at 108.40 now, takes place on the four-hour chart. If the pair slip under the 108.40, the 107.70, the 107.00 and the 106.70 support-levels may gain sellers’ attention. Meanwhile, clear break of 109.20 enables the pair to aim for the 109.50 and the 110.00 resistances. In case prices manage to extend its up-moves past-110.00, the 110.25-30 seems crucial to watch as it holds the gate for the pair’s rally to 110.80 & 111.35-40 numbers to north.
Inability to cross the 124.85-125.15 region indicates brighter chances of the EURJPY’s another dip to 123.40, breaking which 122.50 could flash on Bears’ radars. Should prices continue trading southwards below 122.50, the 122.00, the 120.60 and the 120.00 might offer intermediate halts during its drop to 118.65. If at all the quote surpasses 125.15 on a daily closing basis, the 125.80, the 126.40 & 50-day SMA level of 127.20 can lure the buyers. Though, a descending trend-line stretched since late-September, at 127.70, may confine the pair’s rise beyond 127.20, if not then 200-day SMA level of 129.10 and the 130.00 round-figure could be targeted on long positions.
Not only more than a month old resistance-line, at 78.20, but the 78.50-70 area also challenges the AUDJPY’s upside, which if conquered opens the gate for the pair’s rise to 79.00 & 80.00. However, 50-day & 100-day SMA confluence, around 80.35-45, may limit the advances after 80.00, which if not respected can trigger the pair’s surge to 81.40 level, including 200-day SMA. Alternatively, the 77.55 & the 77.00 could hold the pair’s decline captive, breaking which 76.00 and the 75.20 might come forward as supports. Assuming the pair’s weakness below 75.20, the 74.40, the 72.40 and the 70.85 could become its next rests.
Unless breaking 82.40-55 resistance-zone, the CADJPY may fall short of aiming the 83.00, needless to mention about 50-day SMA level of 83.80 and the three-month long descending trend-line, at 84.00. Given the pair crosses 82.55 and the 84.00 barriers, the 200-day SMA level of 84.95 and the 85.20 might become Bulls’ favorites. On the downside, the 81.65 support-line break can fetch the quote to 81.00 and then to 80.60 prior to highlighting the 80.00 psychological magnet. Should prices slide beneath 80.00, the 79.60, the 78.50 and the 77.15 can appear in limelight.
This article was originally posted on FX Empire
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