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USD / JPY Technical Forex Analysis for Forex Traders

The Dollar/Yen did not break the support specified in yesterday’s report, not even with a single pip. It consolidated above it, and edged higher until it reached 86.43. We can classify that as a clear attempt to rebound, coming after the current falling wave (which we talked about several times) has reached its first suggested target at 85.52. Nevertheless, we see these attempts as weak and shallow. We believe the falling wave will continue to seek lower targets, after a limited correction, but what are the next targets? In the attached chart, which is a weekly one, we can see the falling channel from Sep 07 top.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke both the support and resistance specified in yesterday’s report, without being able to reach the targets specified. However, the dollar managed to drag the Euro to 1.3130. And as we said yesterday’s report: “The fact that the rising move is slowing down warns of a possible correction for the whole rise from Friday’s low. Such a correction would be a violent one, with its size a little less than 200 pips, since its ideal target is at 1.3086.” And up until now, we have seen the price dropping from Tuesday’s top almost 130 pips! Technically, what is really important is that we are approaching a very important trend line, and are about to test it: the trend line rising from June 29th low on hourly the chart, which is running very close to yesterday’s low.

USD / JPY Technical Forex Analysis for Forex Traders

The Dollar/Yen dropped in the down wave we have talked about, it broke the support specified in yesterday's report 86.25, and successfully reached the first suggested target 85.52. With this, the first target of the falling wave is met, but what are the next targets? In the attached chart, which is a weekly one, we can see the falling channel from Sep 07 top. Although the bottom of this channel is very far away, and is just above 74, but there is an interesting trend line inside it, combining the monthly lows of Dec 08, Jan & Nov 09. This line is around 82.65 currently, providing us with a perfect target for this dropping wave, since we still expect, as we did before, that it will dive below 84.81.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke resistance specified in yesterday's report 1.3174, and came very close to hitting the suggested target of 1.3200, but it stopped (for the second day in a row) only 6 pips before it, before retreating significantly to 1.3181. The fact that the rising move is slowing down warns of a possible correction for the whole rise from Friday's low. Such a correction would be a violent one, with its size a little less than 200 pips, since its ideal target is at 1.3086. Therefore, we should keep eyes & mind open today, and consider all scenarios, and keep separate trading plans ready. What is requested from the Euro now is to break the resistance 1.3227 which it is trading almost 20 pips below. This resistance is the key to more fireworks, and is the key to 1.33.

USD / JPY Technical Forex Analysis for Forex Traders

Finally, we have clearly surpassed wave 5 bottom, which indicates that the correction we have been monitoring for the past days is finally over, which makes it official: we are in a new down wave! But the bounce from Friday’s low

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke support specified in yesterday’s report 1.3028, and came close to hitting the suggested target of 1.2962, but it stopped a few steps before it, then it bounced clearly. It is clear that the Euro is facing some difficulties ahead of and around 1.31: there is the well known resistance 1.3092, Friday’s top 1.3105, and now we can also see that after the open, the price has bumped into 1.3086 a couple of times during the Asian session. If the price can go back to trade above 1.3086, reaching 1.32 (and above) will be only a matter of time! The targets in this case will be 1.3200 & the bottom we still remember 1.3266.

USD / JPY Technical Forex Analysis for Forex Traders

The Dollar/Yen reached the first of the “ideal” targets for this rising correction: short term 61.8% Fibonacci level at 88.01, and then retreated sharply, dropping for more than 100 pips, which could be read as an “exhaustion” in upside activity. Therefore, and even though we are negative about this pair on the medium term, we should not neglect these signs which force themselves upon us for today! Short term support is at the seriously important 86.81, and if broken, the price will resume its drop after a 3-wave correction, targeting 85.84 & 84.81. Resistance is at 88.01. A break here indicates that the odds of a continuation of the correction of the 5 waves down from 92.87 are still massive.

Euro / Dollar Technical Forex Analysis for Forex Traders

For the second day in a raw, the Euro didn’t even come close to the support specified in yesterday’s report 1.2903, finding a bottom at 1.2967, and refusing to drift away from the 1.30 level for more than a third of a cent, before trying to break 1.3026, only to stop 2 pips above it. Therefore, we await a test of the set of important resistance levels in the neighborhood 1.3026, 1.3044, and 1.3035, the last of which is our favorite, since it is presented by the trend line drawn from Tuesday’s high on hourly chart.

USD / JPY Technical Forex Analysis for Forex Traders

The Dollar penetrated the resistance specified in yesterday’s report 87.37, and came extremely close to the suggested target 88.01 (yesterday’s high was 87.96). As we have said several times in last week’s reports, signs show that the possibility of a rising correction to correct the fall from June 3rd top 89.09 to July 16th low 86.25 is growing. On the top of these signs: the inverted hammer formation, which appeared on the daily chart, and the completed 5-wave move, and further more what looks to be the corrective waves (a) & (b) forming in an ideal manner (please refer to the attached chart), and wave (c) developing in an ideal fashion, and approaching one of its ideal targets (short term 61.8% Fibonacci level at 88.01).

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro didn’t even come close to the support specified in yesterday’s report 1.2872, finding a bottom at 1.2950, and refusing to drift away from the 1.30 level for more than half a cent, before trying to break 1.3026, without being able to hold above it. Therefore, once again, we await a test of the important resistance 1.3026, where there is the 2-month high. But, we will not lose interest in our newly found rising channel we talked about yesterday, and when we look at the hourly chart, we find that Friday’s dive has stopped at the bottom of a new rising channel which will be placed under our focus for today, knowing that the bottom of the channel is at 1.2903. Moreover, we find the area between Fibonacci 61.8% at 1.3075 and May 10th top 1.3092 to be very interesting.

USD / JPY Technical Forex Analysis for Forex Traders

As we have said several times in last week’s reports, signs show that the possibility of a rising correction to correct the fall from June 3rd top 89.09 to July 16th low 86.25 is growing. On the top of these signs: the inverted hammer formation, which appeared on the daily chart, and the completed 5-wave move, and further more what looks to be the corrective waves (a) & (b) forming in an ideal manner (please refer to the attached chart), and wave (c) developing in an ideal fashion. Therefore, and even though we are negative about this pair on the medium term, we should not neglect these signs which force themselves upon us for today! Short term support is at 86.81, and if broken, the price will resume its drop after a 3-wave correction, targeting 85.84 & 84.81.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro survived just above the support we presented in yesterday’s report 1.2883 with amazing accuracy (yesterday’s low was 1.2886). Then it went all the way up to break yesterday’s resistance 1.2942, and it is still approaching the suggested target 1.3026 as we speak (the high until the moment of preparing this report is 1.3016). Therefore, we await a test of the important resistance 1.3026, where there is the 2-month high. But, we will not lose interest in our newly found rising channel we talked about yesterday, and when we look at the hourly chart, we find that Friday’s dive has stopped at the bottom of a new rising channel which will be placed under our focus for today, knowing that the bottom of the channel is at 1.2872.

USD / JPY Technical Forex Analysis for Forex Traders

As we have said several times in last week's reports, signs show that the possibility of a rising correction to correct the fall from June 3rd top 89.09 to July 16th low 86.25 is growing. On the top of these signs: the inverted hammer formation, which appeared on the daily chart, and the completed 5-wave move, and further more what looks to be the corrective waves (a) & (b) forming in an ideal manner (please refer to the attached chart), and wave (c) developing in an ideal fashion. Therefore, and even though we are negative about this pair on the medium term, we should not neglect these signs which force themselves upon us for today! Short term support is at 87.33, and if broken, the price will resume its drop after a 3-wave correction, targeting 86.72 & 85.84.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro fluctuated violently on Friday, breaking both the support & resistance specified in the report, but only reaching the target in the case of the support. After breaking 1.2860, the Euro reached the first suggested target 1.2807 successfully. When looking at the hourly chart, we find that Friday's dive has stopped at the bottom of a new rising channel which will be placed under our focus for today. The bottom of the channel is at 1.2807, but after the strong bounce we seen late Friday, the price built another support ahead of the channel bottom at 1.2883. In case we break today's support (1.2883) we will drop to test the bottom of the channel at 1.2807 as a first target.

USD / JPY Technical Forex Analysis for Forex Traders

No change for yesterday’s outlook, after the Yen’s strength penetrated the lows of last December & January, we were left with no notable support protecting the 15-year low which was reached last November at 84.81! We will not be a bit surprised if this pair started to move in that direction, and tried to break that low! On the contrary, we have been expecting this for weeks now, and it was included in our reports several times. But, signs show that the possibility of a rising correction to correct the fall from Wednesday’s top 89.09 to Friday’s low 86.25 is growing.

Euro / Dollar Technical Forex Analysis for Forex Traders

Precisely as we have expected, the long awaited reversal has finally started. It came in a time after the Euro penetrated 1.30 and everybody was cheering for it! However, it broke the support specified in yesterday’s report at 1.2869, and successfully reached the suggested target 1.2764. The evidences we provided in yesterday’s report has triumphed for the technical analysis, over other things which favored the Euro! We have mentioned evidence of a reversal yesterday, especially: 1. No daily close above 1.2997 & 2.

USD / JPY Technical Forex Analysis for Forex Traders

No change for yesterday’s outlook, after the Yen’s strength penetrated the lows of last December & January, we were left with no notable support protecting the 15-year low which was reached last November at 84.81! We will not be a bit surprised if this pair started to move in that direction, and tried to break that low! On the contrary, we have been expecting this for weeks now, and it was included in our reports several times. But, signs show that the possibility of a rising correction to correct the fall from Wednesday’s top 89.09 to Friday’s low 86.25 is growing. On the top of these signs: the inverted hammer formation, which appeared on the daily chart, and the completed

Euro / Dollar Technical Forex Analysis for Forex Traders

Although the Euro penetrated 1.30 and reached 1.3026, it dropped hard, breaking the support of yesterday’s report 1.2952, and bottoming just ahead of our suggested target and at 1.2838. With that, we have even more evidence of a reversal, most important factors in this conception are: 1. No daily close above 1.2997 & 2. A “reversal day” pattern for yesterdays bar/candle on the daily chart. This shows just how important the area around 1.30 is, which is probably the level most qualified to turn the Euro around, and resize this soaring move into a correction! This strong & sharp jump is a natural fruit of breaking the top of the channel after touching it for a record number of times, but eventually the Euro managed to break it!

USD / JPY Technical Forex Analysis for Forex Traders

After the Yen’s strength penetrated the lows of last December & January, we were left with no notable support protecting the 15-year low which was reached last November at 84.81! We will not be a bit surprised if this pair started to move in that direction, and tried to break that low! On the contrary, we have been expecting this for weeks now, and it was included in our reports several times. But, signs show that the possibility of a rising correction is growing, to correct the drop from Wednesday’s top 89.09 to Friday’s low 86.25. On the top of these signs: the inverted hammer formation, which appeared on the daily chart. Therefore, and even though we are negative about this pair on the medium term, we should not neglect these signs which force themselves upon us for today!

Euro / Dollar Technical Forex Analysis for Forex Traders

Although the Euro broke the support specified in yesterday’s reports 1.2889, but it did not reach or even come close to the suggested target 1.2820, as if it was still not ready to drift away from 1.30 yet. On Friday, the Euro topped at




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