USDJPY – Monthly Forecast Jan 2014

Recommendations: LONG positions above 103.15 with 106.30 & 107.30 as next targets.
Alternative scenario:The downside breakout of 103.15 will call for a slide to 102.15/101.00.
Description:The USDJPY continued its bullish momentum as expected last month , stability above the key support 103.15 on a daily basis will keep the bullish momentum intact and look for 106.30 levels ahead of 107.30, break of 107.30 will open 108.30/109.40 levels next.On the downside ; main support comes at the 103.15 levels , losing this level on a daily basis would weaken the current bullish run and bring consolidations for retesting  103.15/102.15 levels before the next possible rise.

Trend direction :Upward

Support and resistance levels :

  • 109.40
  • 108.35
  • 107.30 – Overbought – Trend continuation level
  • 106.25 – Minor resistance
  • 105.20 –
  • 104.20  – Minor support
  • 103.15  – Oversold – Bearish breakout level – Pivot level for Jan 2014
  • 102.15 – 101.00 – 99.95 – 98.90.

Considerations :

  • Main support comes at 103.15 levels , buying the pair is recommended after rejection from this level on a daily basis.
  • If 103.15 fails on a daily basis, 104.20 should limit any upside move and bring decline towards 102.15/101.00 levels.
  • If  103.15 fails on a daily basis , and 104.20 is taken out , next resistance would be 107.30…
  • If 107.30 is taken out , 106.25 should contain any bearish correction and bring rise towards 108.35/109.40 levels.
  • If 107.30 is taken out  , and  106.25  failed to hold , next support would be 103.15…

 

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