- Testing key resistance zone
- Cyclical picture turning more positive
Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.
Trading in USD/JPY has been frustrating (to say the least) over the past few months as the rate has been locked in a contracting range above 100.75. The cyclical outlook of the exchange rate, however, suggests that this regime could be about to change as several important relationships converged around the time of the month-to-date low at 101.05. Admittedly momentum has been lacking since that low, but the rate has begun to show some signs of life over the past few sessions with a break above a couple of key Gann lines in the 101.80 area (see chart below). A daily close above this level will be a strong first step, but the month-to-date high at 102.25 really needs to be overcome to signal to us that something more important is indeed developing on the upside. Any weakness back under 101.05 would invalidate this burgeoning positive view.
To receive other reports from this author via e-mail, sign up to Kristian’s e-mail distribution list via this link.
USD/JPY Daily Chart: July 25, 2014
Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risk in the Sessions Ahead:
LEVELS TO WATCH
Resistance: 102.00 (Psychological), 102.25 (MTD high)
Support: 101.35 (Gann), 101.05 (MTD low)
Strategy: Buy USD/JPY
Entry: More aggressive traders can look to buy on a daily close above 101.80, while more cautious traders can wait for a move through 102.25 to position.
Stop: 1-day close below 101.05
ForexAmid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
Forex FundamentalsAs the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
EconomicsOne particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
ForexBreaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
InvestingAccess to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
EconomicsSouth Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
Forex EducationPeer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
ForexHere is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
EntrepreneurshipA brief overview of the top apps that help forex traders with on time information, charts and more.
Investing BasicsVirtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
- No results found.