FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jan 16 09 07:27 GMT |

EURUSD Comment: Trying, not very well, to base around the 1.3200 area and a very thin Ichimoku 'cloud'. A break above the 9-day average at 1.3412 may trigger some short-covering. Strategy: Buy at 1.3245/1.3200; stop below 1.3000. Add to longs above 1.3375 for 1.3475 then 1.3600 Direction of Trade: → Chart Levels: Support Resistance 1.3200 " 1.3277 1.314 1.33 1.311 1.3338 1.3093 1.3412 1.3025* 1.3488 GBPUSD Comment: Same old story as we remain stuck in the middle the 'wedge' formation that has dominated since October. Hopefully if other currencies gain a little ground against the US dollar they will help Cable to move higher. Strategy: Buy at 1.4800; stop below 1.4460. First target 1.4925, then 1.5250 Direction of Trade: → Chart Levels: Support Resistance 1.4700 " 1.4889 1.4635 1.4922 1.4470* 1.5035 1.4375 1.525 1.4350* 1.5375* USDJPY Comment: Rallying slowly from a recent low at 88.48 and likely to hold above here today and early next week. We favour another squeeze later today towards the moving averages and probably a test of the lower edge of the 'cloud' next week. Strategy: Trade the range between 89.00 and 91.50 keeping an open mind. Direction of Trade: → Chart Levels: Support Resistance 90.00 " 90.58 89.5 90.84/90.99* 89.21 91.66 88.8 92 88.48* 92.41/91.56* EURJPY Comment: Bouncing cautiously from trendline support, here and in a number of other Yen crosses, adding a little hope that we will not break to new recent lows this month and maybe longer. Over this quarter we currently favour a lot of sideways work in all Yen crosses and therefore trading strategies should adapt considerably. Strategy: Attempt tiny longs at 119.35; stop below 115.80. Target 120.75, maybe 123.40 Direction of Trade: → Chart Levels: Support Resistance 117.83 " 120.02 117.13 120.75 116.57/116.24* 121.95 115.87 123.65 113.62** 126.25 Mizuho Corporate Bank Disclaimer The information contained in this paper is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This paper has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.