The sharp bounce from ahead of the $1.2395 support Friday eased bearish pressure and sees the focus shift to the $1.2567-84 region to start the new week. Bulls look for a close above $1.2584 to confirm a break of the 21-DMA and hint at a move back to the $1.2885-1.2995 region. Initial support is now noted at $1.2499 with bears needing a close below to reconfirm bearish pressure and immediate focus on 2014 lows.
RES 4: $1.2771 High Oct 29
RES 3: $1.2619 Falling daily trend line
RES 2: $1.2584 Low Oct 7 now resistance
RES 1: $1.2567 21-DMA
LPRICE: $1.2544
SUP 1: $1.2499 High Nov 11 now support
SUP 2: $1.2395 Low Nov 11
SUP 3: $1.2357 2014 Low Nov 7
SUP 4: $1.2241 Low Aug 10 2012
The sharp bounce from fresh 2014 lows and below the Bollinger band base ($1.5671) Friday are of some concern to bears. In saying that, layers of resistance remain with bulls needing a close above $1.5789 to ease bearish pressure and above $1.6038 to confirm a break of the 21-DMA and shift immediate focus back to the $1.6185-1.6228 region. Key concerns for bears come from O/S daily studies and the Bollinger band base.
RES 4: $1.5881 Previous hourly support now resistance
RES 3: $1.5843 Hourly resistance Nov 12
RES 2: $1.5789 Hourly resistance Nov 12
RES 1: $1.5738 Hourly resistance Nov 17
LPRICE: $1.5717
SUP 1: $1.5591 2014 Low Nov 14
SUP 2: $1.5563 Low Sept 6 2013
SUP 3: $1.5462 Low Aug 30 2013
SUP 4: $1.5425 Low Aug 28 2013
The sharp correction lower from fresh 2014 highs today is setting the USD/JPY up for a bearish key day reversal. Bears now look for a close below ¥115.31 to confirm an easing of bullish pressure with a close below ¥113.86 needed to hint at a deeper correction that targets the ¥112.32 Nov 3 low and the 21-DMA just below (¥111.91). Initial support is noted on the hourlies at ¥116.10 with bulls needing a close above to ease the current pressure on the key ¥115.31 support.
RES 4: ¥119.82 Monthly High Aug 8 2007
RES 3: ¥117.94 Monthly High Oct 15 2007
RES 2: ¥117.05 2014 High Nov 17
RES 1: ¥116.10 Hourly resistance Nov 17
LPRICE: ¥115.53
SUP 1: ¥115.31 Low Nov 13
SUP 2: ¥114.88 Low Nov 12
SUP 3: ¥114.62 Hourly support Nov 11
SUP 4: ¥113.86 Low Nov 10
The rally to start the new week fell just short of the rising short term daily channel top with the sharp correction from fresh 2014 highs hinting at cracks in the uptrend. Bears now look for a close below ¥144.77 to confirm an easing of bullish pressure and below ¥143.34 to end bullish hopes and shift immediate focus back to the ¥140.39-64 region where the 21-DMA is located. Initial resistance is noted on the hourlies at ¥145.60 with bulls needing a close above to relieve the current bearish pressure.
RES 4: ¥147.36 Bollinger band top
RES 3: ¥146.63 Rising short term channel top
RES 2: ¥146.53 2014 High Nov 17
RES 1: ¥145.60 Hourly resistance Nov 17
LPRICE: ¥144.96
SUP 1: ¥144.77 Hourly support Nov 14
SUP 2: ¥144.28 Low Nov 14
SUP 3: ¥143.72 Low Nov 13
SUP 4: ¥143.34 Low Nov 12
The close above the £0.7864 level has seen bulls extend gains with the 61.8% Fibo having been taken out although the Bollinger band top appears to be limiting follow through. In saying that, overall focus has shifted to the £0.8046-67 region with bears needing a close below the £0.7927 support to ease bullish pressure. Overall a close below £0.7864 is needed to shift focus back to the key £0.7764-66 support region.
RES 4: £0.8067 Monthly high Sept 10
RES 3: £0.8060 200-DMA
RES 2: £0.8046 Monthly high Oct 15 2014
RES 1: £0.8003 Hourly resistance Nov 17
LPRICE: £0.7979
SUP 1: £0.7957 Hourly support Nov 14
SUP 2: £0.7927 High Oct 22 now support
SUP 3: £0.7918 100-DMA
SUP 4: £0.7894 55-DMA
