USD/JPY breaks below important downside pivot
USD/CAD testing key near-term resistance
Next few days will be pivotal for the yellow metal
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Foreign Exchange Price & Time at a Glance:
Price & Time Analysis: USD/JPY
USD/JPY touched its lowest level since the start of February earlier today before rebounding just ahead of the year-to-date low near 100.75
Our near-term trend bias remains lower in USD/JPY while below 102.35
A move under 100.75 will be further evidence that a more important decline is indeed unfolding in the exchange rate
An important cycle turn window is seen next week
Only strength back through the 3rd square root relationship of the year's high at 102.35 would shift the near-term trend bias positive
USD/JPY Strategy: Like the short side while below 102.35.
Price & Time Analysis: USD/CAD
USD/CAD has moved stubbornly higher since rebounding ahead of a key Fibonacci cluster near 1.0800 at the beginning of the month
Our near-term trend bias is still lower in Funds while below 1.0915
Interim support is seen around 1.0855, but weakness under 1.0800 is really needed to signal broader downside resumption
Minor cycle turn windows are seen today and
A daily close over 1.0915 will turn the near-term trend bias positive
USD/CAD Strategy: Like the short side under 1.0915. Flat on a close above.
Focus Chart of the Day: GOLD
Gold is locked in a contracting range and looks to be gearing up for a powerful move any day now. The question is in which direction? Given the large range day reversals on high volume in the metal during key cyclical turn windows on April 24th and May 2nd we have been favoring an eventual move to the upside in Gold. However, the metal's inability to get out of its own way since registering these reversals is beginning to make us seriously question this view. The next few days should be important for determining direction. Any weakness under 1268 would completely undermine the fading positive cyclical picture and turn things quickly negative. A cluster of Gann levels between 1315 and 1321 is paramount with a move over the upper boundary of this zone desperately needed to confirm that our seemingly stale positive view is the correct one.
This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to natural law and through the use of various geometric, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved.