Talking Points EUR/USD closing in on important support level USD/JPY hovering above key support Cycle turn window in GBP/USD today Foreign Exchange Price & Time at a Glance: Price & Time Analysis: USD/JPY USD/JPY remains in consolidation mode above 38% retracement of the October to January advance near 102.00 Our near-term trend bias is lower in the exchange rate while below 103.75 The 102.00 area remains a key downside pivot with weakness below needed to signal the start of another leg lower in USD/JPY A cycle turn window is seen on Friday/Monday Only a close over the 2nd square root relationship of the year's low at 103.75 would turn us positive on the rate USD/JPY Strategy: We like the short side while below 103.75. Instrument Support 2 Support 1 Spot Resistance 1 Resistance 2 USD/JPY 101.55 *102.00 102.50 103.40 *103.75 Price & Time Analysis: GBP/USD GBP/USD has come under steady downside pressure since failing at the1.6660 200% extension of the October/November late last week Our near-term trend bias is higher in Cable while above the 2nd square root relationship of the year's high at 1.6410 The 1.6660 is now a clear near-term upside pivot with traction above needed to re-instill upside momentum and expose a key Fibonacci/Gann attraction near 1.6730 A minor cycle turn window is seen over the next day or so Only a daily close below 1.6410 would turn us negative on Cable GBP/USD Strategy: We like the long side while over 1.6410. Instrument Support 2 Support 1 Spot Resistance 1 Resistance 2 GBP/USD 1.6310 *1.6410 1.6485 1.6540 *1.6660 Focus Chart of the Day: EUR/USD The cyclical picture looks to be turning negative once again for EUR/USD. Following repeated failures to close above a key Gann angle line earlier in the week the rate has begun to show renewed signs of weakness with the Euro falling below 1.3600 earlier today. A key level for us going forward is the 3rd square root relationship of 2013 high at 1.3540. A close below this level is required to confirm that a new leg lower is indeed underway. If the exchange rate fails to move below this key pivot within the next few days it will cast some doubt on the broader negative cyclical view. A move back over1.3700 would warn that our timing is off, but only traction above 1.3775 turns the outlook positive. 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
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