Talking Points USD/JPY rebounds from key short-term Fibonacci level GBP/USD recovers from Gann support at 1.6345 again AUD/USD enters into medium cycle turn window Weekly Foreign Exchange Price & Time at a Glance: Foreign Exchange Price & Time at a Glance: Price & Time Analysis: USD/JPY USD/JPY came under heavy downside pressure on Tuesday and close below the 2nd square root relationship of the year-to-date high at 103.35 Our near-term trend bias is now lower in USD/JPY and will remain so while below 104.80 The 161.8% projection of the early January decline at 102.85 acted as support on Monday and weakness below this level is now needed to confirm a resumption of the near-term decline A minor cycle turn window is seen around the latter part of the week Only a close over 104.85 would turn us positive on USD/JPY USD/JPY Strategy: Sell into strength while below 103.80 Instrument Support 2 Support 1 Spot Resistance 1 Resistance 2 USD/JPY 102.35 *102.85 103.60 104.15 *104.80 Price & Time Analysis: GBP/USD GBP/USD came under aggressive downside pressure on Monday before finding support again at the 2nd square root rerlationship of the year-to-date high at 1.6345 Our near-term trend bias is lower in Cable while below 1.6570 Support at 1.6345 is critical and needs to breached soon if further material weaknes is to be seen A minor cycle turn window is seen around the end of the week Only aggressive strength over 1.6570 on a daily close basis would turn us positive on the Pound GBP/USD Strategy: Like the short side while under 1.6570. Instrument Support 2 Support 1 Spot Resistance 1 Resistance 2 GBP/USD 1.6295 *1.6345 1.6435 1.6470 *1.6570 Focus Chart of the Day: AUD/USD We were planning on writing today about the medium-term cycle turn window in AUD/USD over the next couple of days, but the market seems to have beat us to the punch. The resistance area at .9040/60 where Aussie has seemingly failed is potentially important as it marks a convergence of several Gann levels. Just how important this turn proves to be will depend heavily on the follow through over the next few days. The 8th square root relationship of the 4th quarter high at .8960 is an important near-term pivot ahead of critical support at .8860. Traction below the latter would confirm a broader downside resumption. There is a chance that this latest decline is only a minor reprieve before heading higher again, but only a daily close over .9060 negates the negative cyclicality. This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved
Most Popular Stories
- Koch Brothers Step up Anti-Obamacare Campaign
- FDIC Accuses Big Banks of Fraud, Conspiracy
- Is Malaysian Airlines Flight 370 in Andaman Sea?
- Vybz Kartel Convicted of Murder
- Stocks Close Lower Ahead of Crimea Vote
- FDIC Sues Big Banks Over Rate Manipulation
- Ulta Shares Look Good on Strong Q4
- Jittery Investors Dumping Russian Stocks
- U.S. Consumer Sentiment Falls in Early March
- JLo Turns the Tables in New Vid: 'I Luh Ya Papi'