Friday, July 11, 2014

Weekly Price & Time: USD/JPY Inching Towards the Lows of the Year




Talking Points



  • 1.3570 area in the euro is critical


  • USD/JPY moment of truth coming up


  • Gold nearing important upside pivot


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Weekly Foreign Exchange Price & Time at a Glance:



Weekly Price & Time Analysis: EUR/USD


Weekly Price & Time: USD/JPY Inching Towards the Lows of the Year


Charts Created using Marketscope – Prepared by Kristian Kerr



  • EUR/USD has been weak since failing earlier in the month near the 38% retracement of the May to June range


  • Our broader bias is positive on the euro


  • A daily close over 1.3690 is needed to set up a new leg higher in the exchange rate


  • A turn window is seen in about a week


  • A daily close under 1.3470 is needed to turn our outlook negative


Weekly EUR/USD Strategy: Like the long side while over 1.3470 (close).



Weekly Price & Time Analysis: USD/JPY


Weekly Price & Time: USD/JPY Inching Towards the Lows of the Year


Charts Created using Marketscope – Prepared by Kristian Kerr



  • USD/JPY has come under renewed pressure following last week’s failure near the 2×1 Gann angle line of the year’s high in the 102.20 area


  • Our broader bias is negative in the rate while below 102.80


  • A close under 101.35 is needed to signal a resumption of the broader decline


  • The next turn window of importance is eyed in about a week


  • Only strength over 102.80 will turn us positve on USD/JPY


Weekly USD/JPY Strategy: Like tactical short positions in USD/JPY while below 102.80.



Weekly Price & Time Analysis: GOLD


Weekly Price & Time: USD/JPY Inching Towards the Lows of the Year


Charts Created using Marketscope – Prepared by Kristian Kerr



  • XAU/USD traded through the 61.8% retracement of the March /June decline at 1334 this week to trade at its highest level in almost four months


  • Our broader trend bias remains higher in the metal


  • A Gann confluence zone between 1348 and 1356 is the next area of attraction with a move above needed to signal that a much more important move higher is underway


  • A turn window is eyed in about a week or so


  • Weakness under 1305 would turn us negative on Gold again


Weekly XAU/USD Strategy: Like the long side while over 1305.



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Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com



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



To contact Kristian, e-mail kkerr@fxcm.com. Follow me on Twitter @KKerrFX





Weekly Price & Time: USD/JPY Inching Towards the Lows of the Year

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