Munther T Marji

USD / JPY Technical Forex Analysis for Forex Traders

The Dollar/Yen retreated a little bit, and found a bottom at 88.37. As we have explained several times, it seems that we are in a wave 4 correction now (please refer to the attached chart), which will ideally target a Fibonacci ratio of the wave 3 dive. But the important question now is this: is the 4th wave correction done? yesterday’s close produced a shooting star pattern on the daily chart, making us believe that this correction is probably over! Short term support is at Friday’s top 88.37, and breaking it would indicate a continuation of the drop to 87.35 & 86.47. The resistance is at 88.76, and breaking it would mean that the Dollar will continue to capitalize its latest bounce, which will ideally target Fibonacci levels for wave 3: 89.52 & 90.13.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro did not decisively break the support or the resistance specified in yesterday’s report: it stopped 4 pips above the resistance specified in the report, and then found a bottom only 2 pips below the report’s support. The price topped at 1.2720 on Friday, in what turned out to be the most serious test of the top of the rising channel on the hourly chart. The drop which followed the week’s open, raised the possibilities that we could be before an important turning point at the channel top, especially after dropping from Friday’s high 150 pips so far. As we said in our last report: “We will not be able to escape the fact that a break here will be a very positive signal for both the short & medium terms.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke the support specified in Friday’s report 1.2677, and dropped to 1.2607 before it continued its way down after the new week’s open to 1.2578 (today’s low at the moment of preparing this report). The rise topped at
1.2720, in what turned out to be the most serious test of the top of the rising channel on the hourly chart.

The drop which followed the open, raised the possibilities that we could be before an important turning point at the channel top, specially after dropping from Friday’s high 150 pips so far. As we said in our last report: “We will not be able to escape the fact that a break here will be a very positive signal for both the short & medium terms.

USD / JPY Technical Forex Analysis for Forex Traders

The Dollar/Yen continued to rise, reaching 89.13, but at a much slower pace that we have seen on Wednesday. This slow bounce came as no surprise, with the consolidation around 88, and after bouncing from the support area shown on the hourly chart below, and after clearly breaking the falling trend line from June 21st top.

USD / JPY Technical Forex Analysis for Forex Traders

Our waiting finally paid, as we finally saw the Dollar/Yen sharply bouncing as we have expected, and as we have been waiting for. The Dollar/Yen broke the resistance specified in yesterday's report 87.72, only to reach 88.44(the high at the moment of preparing this report). This sharp bounce came as no surprise, with the consolidation around 88, and after bouncing from the support area shown on the hourly chart below, and after clearly breaking the falling trend line from June 21st top. Short term support is at 88.19, and breaking it would indicate a continuation of the drop to 87.35 & 86.47.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke the resistance specified in yesterday's report 1.2603, and successfully reached the first suggested target 1.2681 with a very good accuracy since yesterday's high was 1.2686. The most important technical event, was touching the top of the rising channel on the hourly chart for the third time during the Asian session, after touching it for the first time on Friday, and the second on Tuesday. We could be before an important turning point at 1.2686, but until this moment we have not got far from the top of the channel. We should carefully watch the top of this channel, which is at 1.2690 currently. We will not be able to escape the fact that a break here will be a very positive signal for both the short & medium terms.

USD / JPY Technical Forex Analysis for Forex Traders

In spite of the obvious trend line break to the upside, we have not seen a reaction to match the importance of this break until this moment. But fear not, this does not change the positive technical outlook for this pair. We still believe in the possibilities of a strong bounce. With this consolidation around 88, and after bouncing from the support area shown on the hourly chart below, and after clearly breaking the falling trend line from June 21st top (please refer to the attached chart), we think that the possibility of a bounce is rising, even if that was for a correction. Short term support is at 87.57, and breaking it would indicate a continuation of the drop to 86.95 & 86.47.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro stopped ahead of the resistance specified in yesterday’s report 1.2563 (the high for the past 24 hours is 1.2556). Later, it dropped, breaking the support specified in the report 1.2527, and went down as expected, but only to find another support at 1.2479, standing between it & its target at 1.2451. The most important technical event, was approaching the top of the rising channel on the hourly chart on Friday. We could be before an important turning point at 1.2609, since we saw the price falling away from this level yesterday. We should carefully watch the top of this channel, which is at 1.2656 currently. We will not be able to escape the fact that a break here will be a very positive signal for both the short & medium terms.

USD / JPY Technical Forex Analysis for Forex Traders

The Dollar/Yen continued to drop slowly, a bit faster than usual this morning, in yet another confirmation that the bears are beating the bulls! USDJPY broke the support specified in yesterday's report 89.20, and reached a new bottom for this recent falling trend at 88.59 without being able to meet our suggested target 87.99. This confirms the negative technical outlook we have seen lately. And we believe it will persist as long as we are trading below the falling trend line from June 14th top, which is currently at 90.64. Short term support is at 88.67, and breaking it will be another evidence that we are going down. This break will target 87.99 &

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke the support specified in yesterday's report 1.2358, and dropped as expected, and reached the first suggested target 1.2260, successfully! What is funny, is that the Euro dropped more than 150 pips from the top it reached after this week's open, while the Pound reached a 7-week high above 1.51, and consolidated just below it. Therefore, it is hard to channel the direction of the European currencies against the greenback, and this in itself calls for caution. In the case of the Euro, its fall to meet our suggested target at 1.2260 is a negative sign for the short term without a doubt, If added to the fact that this drop came after the failure to break the top of the descending channel, we can see that this is also negative for the medium term as well.

USD / JPY Technical Forex Analysis for Forex Traders

The Dollar/Yen continued to drop slowly, in yet another confirmation that the bears are beating the bulls! USDJPY broke the support specified in Friday’s report 89.40, and reached a new bottom for this recent falling trend at 89.20. This confirms the negative technical outlook we have seen lately. And we believe it will persist as long as we are trading below the falling trend line from June 14th top, which is currently at 90.86. Short term support is at 89.20, and breaking it will be another evidence that we are going down. This break will target 87.99 & 87.35. Last week’s important support at 90.32 will turn into a resistance for today.

Euro / Dollar Technical Forex Analysis for Forex Traders

After its break of the small descending channel, the Euro reached its target for this break which is a test of the top of the main descending channel for the 3rd time! It touched, and slightly surpassed, the top of this channel (please refer to the attached chart). There is nothing more important than this test, for the short, and medium terms! But, we need a confirmation of this break: first we need the Euro to keep trading above the top of the channel, and then we need it to break the Asian session high 1.2396. If the Euro manages to provide what is needed, we will completely change our negative outlook for this pair. This is why today’s levels will be support at 1.2358 & resistance at 1.2396.

USD / JPY Technical Forex Analysis for Forex Traders

The Dollar/Yen continued to drop slowly, in yet another confirmation that the bears are beating the bulls! With the latest moves, the break of the rising trend line from May 20th will continue to have a tremendous effect on the short term direction, and may be the medium term as well. But, we need a break of today’s support, the support which stopped the drop twice on Monday & today’s Asian session at 90.32 to say that we are on the way to the same set of targets we suggested yesterday. Meaning, if we break 90.32, we will target 89.81 first, and may be 88.96 later. On the other hand, it is required to keep trading below the falling line descending trend line from June 14th high, in order for the negative technical outlook to keep prevailing.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke the support specified in yesterday’s report 1.2282, and dropped as expected, but it settled for a bottom very close to the Fibonacci 38.2% at 1.2240, as it reached 1.2243 during the Asian session. When looking at the attached chart, we immediately realize that the retreat started on Monday could mean a lot. It came from the top of the hourly chart rising trend channel, exactly, and started a strong fall. That is why we expect this drop to go on, and keep escaping further away from the channel top. And since the bottom of this channel is already below 1.20, we expect the price to go below 1.20 on the medium term. As for the short term, the Asian session low which is very close to Fibonacci 38.2% at 1.2243, will be support of the day.

USD / JPY Technical Forex Analysis for Forex Traders

The Dollar/Yen successfully jumped to the broken trend line we talked about previously, and performed a classic retest move, very accurate, before dropping 75 pips, in yet another confirmation that the bears are beating the bulls! With this classic retest, the break of the rising trend line from May 20th will continue to have a tremendous effect on the short term direction, and may be the medium term as well. But, we need a break of today's support at 90.75 to say that we are on the way to the same set of targets we suggested yesterday. Meaning, if we break 90.75, we will target 89.81 first, and may be 88.96 later.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke the support specified in yesterday's report, the important 1.2389, and dropped back below 1.23, hitting 1.2282 during the Asian session, but without being able to reach the suggested target 1.2240. When looking at the attached chart, we immediately realize that this retreat could mean a lot. It came from the top of the hourly chart rising trend channel, exactly, and started a strong fall. That is why we expect this drop to go on, and keep escaping further away from the channel top. And since the bottom of this channel is already below 1.20, we expect the price to go below 1.20 on the medium term. As for the short term, the Asian session low which was tested twice 1.2282, will be support of the day.

USD / JPY Technical Forex Analysis for Forex Traders

With supernatural accuracy, the Dollar/Yen stopped at the support specified in yesterday’s report 91.06 (yesterday’s low was 91.07), and traded above it for the whole time after. Stopping here is in fact a test at the ascending trend line from May 20th low, a very accurate test actually (please refer to the attached chart). This makes this support the single most important support without a shadow of a doubt! This line is currently running at 91.17, and it will be our support of the day. And after such an accurate test, we suggest keeping an eye on this pair, because this very test is what will determine and set the short term direction. If we break 91.17 the price will drop hard, to 89.81 first, and then to 88.96, both levels are significant and critical support levels.

Euro / Dollar Technical Forex Analysis for Forex Traders

With stunning accuracy, The Euro’s rising move stopped at the resistance specified in yesterday’s report 1.2352 (yesterday’s high was 1.2351), and then, just as expected, the drop began. The price then broke the support specified in yesterday’s report 1.2307, only to settle for 1.2253! The rising move halted very close to this month’s top, which was reached on the first day of it: 1.2352. This proves how important this resistance is, that is why it will be our resistance of the day, especially after it managed to send the price down for almost 100 pips. This retreat, from a well known resistance & a target area means that the “hot” rise for the Euro is going cold! If we break the short term support 1.2255, the Euro will probably give up the latest gains.

Euro / Dollar Technical Forex Analysis for Forex Traders

The Euro broke the resistance specified in yesterday’s report 1.2254, and successfully reached the first suggested target 1.2295 and came very close to the second suggested target 1.2352, stopping only 4 pips before it (yesterday’s high was 1.2348). The Euro proved that it is still capable of going higher, which created a small surprise for us. Yesterday’s top came very close to this month’s top, which was reached on the first day of it: 1.2352. This proves how important this resistance is, that is why it will be our resistance of the day. After hitting yesterday’s top, the price retreated to 1.2307. This retreat, from a well known resistance & a target area means that the “hot” rise for the Euro is going cold!

USD / JPY Technical Forex Analysis for Forex Traders

Dollar/Yen broke the resistance specified in yesterday’s report 91.60, but it did not make it to 91(the low at the moment of preparing this report is 91.14). The most important technical event for the past 24 hours was the fact that the descending trend line from last week’s top has got very close to the rising trend line from may 20th low, and it seems as if they are touching at the important 90.96. This makes this support the single most important support without a shadow of a doubt! It seems as if we are about to test it, and we suggested keeping an eye at this pair as it gets closer to this level, because this very test is what will determine and set the short term direction.




Check out More news from Telecom Sector :: Pharmaceutical Sector :: Auto Sector :: Infrastructure :: Real Estate


Syndicate content