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Weekly Price & Time: USD/JPY Rebounds From Bottom of Multi-Month Range

May 23, 2014

Kristian Kerr

Talking Points

  • EUR/USD cracks 200-day moving average
  • USD/JPY finds support ahead of YTD low
  • GOLD consolidates around 1300





    Weekly Foreign Exchange Price & Time at a Glance:



    Weekly Price & Time Analysis: EUR/USD

    Weekly Price & Time: USD/JPY Rebounds From Bottom of Multi-Month Range



  • EUR/USD has come under steady downside pressure since peaking during an important cycle turn window at the start of the month near 1.4000
  • Our broader bias is negative on the Euro while below 1.3825
  • A close under the 3rd square root relationship of the year's high at 1.3640 is needed to confirm that a new leg lower is underway
  • The next important cycle turn window is seen early next month in the euro
  • Only traction over 1.3825 turns our broader outlook positive



    Weekly EUR/USD Strategy: Like the short side while under 1.3970



    Instrument

    Support 2

    Support 1

    Spot

    Resistance 1

    Resistance 2

    EUR/USD

    *1.3520

    1.3590

    1.3630

    1.3755

    *1.3825





    Weekly Price & Time Analysis: USD/JPY

    Weekly Price & Time: USD/JPY Rebounds From Bottom of Multi-Month Range



  • USD/JPY touched its lowest level since early February this week before rebounding aggressively
  • Our broader bias is negative in the rate while below 104.40
  • A weekly close under 101.35 will signal a resumption of the broader decline
  • The end of the month is the next important cycle turn window for the exchange rate
  • Only strength over 104.40 will turn us positve on USD/JPY



    Weekly USD/JPY Strategy: We like tactical short positions in USD/JPY while below 104.40 on a weekly close basis.



    Instrument

    Support 2

    Support 1

    Spot

    Resistance 1

    Resistance 2

    USD/JPY

    100.75

    *101.35

    101.85

    103.10

    *104.40





    Weekly Price & Time Analysis: GOLD

    Weekly Price & Time: USD/JPY Rebounds From Bottom of Multi-Month Range



  • XAU/USD remains locked in a contracting range above key Gann support near 1270
  • Our broader trend bias is positive while over 1270
  • A move through 1321 is needed to confirm an upside resumption
  • A minor turn window is seen later next week
  • A daily close below 1270 will turn us negative on the metal



    Weekly XAU/USD Strategy: Like the long side while over 1270.





    Instrument

    Support 2

    Support 1

    Spot

    Resistance 1

    Resistance 2

    XAU/USD

    1260

    *1270

    1293

    *1321

    1331





    Unfamiliar with Gann Square Root Relationships? Learn more about themHERE.





    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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    Source: DailyFx


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