The pair is finding difficulty building a base above 1.3250 due to the negative effect of momentum indicators appearing on the four-hour chart, currently close to touching minor support around 1.3185. We expect the pair to build a base in an attempt to start a bullish wave that will enable it to surpass pivotal resistance 1.3250. Therefore,we can expect a bullish intraday trend as we await to obtain a clear breach of the mentioned resistance to insure this direction; whereas it is vital that stability is achieve above 1.3075 so expectations may prevail.
The trading range for today is among the key support at 1.3075 and the key resistance at 1.3450.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.
Levels 1.5960 is showing a solidity the pair’s attempts to ascend, where the pair seems to currently be heading to retest the previously breached resistance level at 1.5870. The stochastic is entering oversold areas, where we await a positive crossover that will activate the expected bullish intraday overall direction; targeting mainly 1.6070. We point out that the four hour closing above 1.5870 is essential to resume the expected bullish trend for today.
The trading range for today is among the key support at 1.5790 and the key resistance at 1.6070.The short term trend is to the downside as far as 1.6070 remains intact with targets at 1.3800.
USDJPYThe pair was able to breach pivotal support 85.95 paving the way towards activating yesterday’s suggested scenario. The expected retest for the level is followed by resuming the bearish intraday direction, where its targets start at 84.00. This bearish trend requires the four-hour candlestick to stabilize below 86.55.
The trading range for today is among the key support at 84.00 and the key resistance at 86.85.The short term trend is to the downside as far as 91.55 remains intact with targets at 82.60.
The pair was able to bullishly correct to return within the previously breached sideway range, whereas Stochastic is entering overbought areas that make us expect this bullish correction to limited to 38.2% Fibonacci at 1.0455, which meets with SMA 50. Thus, we can expect to see a bearish intraday direction that requires a clear breach of 1.0395 once again, since this scenario requires stability below 1.0560.
The trading range for today is among the key support at 1.0200 and the key resistance at 1.0560.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.2295.
The pair is trading near the retest level 1.0265, accompanied by momentum indicators nearing overbought areas; thus making us hold onto our suggested scenarios yesterday as we recommend reviewing them to obtain further details for the expected direction today as well. Keep in mind that building a base below 1.0265 is a vital factor to achieve our intraday expectations.
The trading range for today is among the key support at 1.0040 and the key resistance at 1.0340.The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.
By: Yasir Mubarak
Senior Technical Analyst