In Swissquote’s Monday 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 AUD/USD. To view and download the entire report, click here (PDF).
USD/JPY: Challenging its support at 114.06
• USD/JPY has failed to break the hourly resistance at 115.52 (06/11/2014 high) and is now challenging the hourly support at 114.06. A decisive break would validate a short-term double-top with an implied downside risk at 112.61. Other hourly supports stand at 113.17 (04/11/2014 low) and 112.57. An initial resistance lies at 114.64 (intraday high).
• A long-term bullish bias is favoured as long as the key support 105.23 (15/10/2014 high) holds. The break of the major resistance at 110.66 (15/08/2008 high) opens the way for a further rise towards 120.00 (psychological threshold, see also 61.8% retracement of the 1998-2011 decline).
AUD/USD: Bouncing
• AUD/USD is bouncing after having broken the key support at 0.8660. Monitor the test of the hourly resistances 0.8682 (38.2% retracement). Another resistance stands at 0.8762. Hourly supports can now be found at 0.8625 (intraday low) and 0.8541.
• In the long-term, the break of the strong support at 0.8660 (24/01/2014 low) confirms the underlying long-term bearish trend and opens the way for further weakness. Supports can be found at 0.8316 (01/07/2010 low) and 0.8067 (25/05/2010 low). A key resistance stands at 0.8911 (29/10/2014 high).
• Our short strategy has been stopped near its entry price.