The $1.6185 resistance level confirmed significance last week and resulted in a sell-off that sees initial focus firmly back on the 2014 low. The Bollinger base is seen as the key concern for bears as it may limit downside follow through but with layers of resistance having developed on the hourlies bulls need a close above $1.6087 to ease the bearish pressure and above $1.6185 to target $1.6525-35. Fresh 2014 lows see bears targeting the $1.5425 level last seen in Aug 2013.
Friday’s explosive rally that has seen fresh 2014 and nearly 7 year highs for the USD/JPY has seen immediate focus shift to the ¥114.65 Dec 2007 monthly high with overall focus now on the ¥119.82 Aug 2007 monthly high. Layers of support have developed with bears now needing a close below ¥111.89 to ease bullish pressure and below ¥110.69 to shift immediate focus back to the ¥109.46 breakout level from Friday. Key concerns for bulls come from O/B daily studies and the Bollinger band top.
The explosive move higher Friday has seen a continuation to start the new week that has resulted in fresh 6 month highs with bulls now shifting their attention to the 2014 high. Layers of support have developed with bears now needing a close below ¥140.25 to ease bullish pressure and below the 200-DMA to shift overall focus back to the ¥134.10 support. The key concerns for bulls are seen coming from O/B daily studies and the Bollinger band top which may eventually limit further follow through until it plays catch up.
Following on from a couple of week’s caught in a £0.7860-0.7927 holding pattern and recent failures at the 55-DMA bearish dominance has been reconfirmed with a break low Friday that sees bearish focus shift to the 2012 and 2014 low in the £0.7764-66 region. Initial resistance is now noted at the previous £0.7850-60 support region with a close above needed to ease bearish pressure. Overall a close above £0.7951 is needed to end bearish hopes and target the £0.8067-76 region.