In Swissquote’s Thursday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for USD/JPY and Gold. To view and download the entire report, click here (PDF).
Pushing higher
• USD/JPY continues to rise after the break of the strong resistance at 105.44 (see also the 61.8% retracement and the long-term declining trendline). Hourly supports can be found at 106.04 and 105.71 (05/09/2014 high).
• A long-term bullish bias is favoured as long as the key support 100.76 (04/02/2014 low) holds. The break to the upside out of the consolidation phase between 100.76 (04/02/2014 low) and 103.02 favours a resumption of the underlying bullish trend. A test of the major resistance at 110.66 (15/08/2008 high) is favoured.
Approaching the support at 1240
• Gold continues to drift lower and is now closeto the support at 1240. Hourly resistances can now be found at 1258 (09/09/2014 high) and 1278 (04/09/2014 high, see also the declining trendline). Another support lies at 1219 (08/01/2014 low).
• In the long-term, we are sceptical that the horizontal range between the strong support at 1181 (28/06/2013 low) and the major resistance at 1434 (30/08/2013 high) is a long-term bullish reversal pattern. As a result, a decline towards the low of this range is eventually favoured. The recent break to the downside out of the symmetrical triangle confirms this scenario.
