Daily Forecast for Crosses: January 20

By @ibtimes on

EURJPY Forecast

The EURJPY was volatile but indecisive yesterday. The bias is neutral in nearest term. Immediate support at 110.15. Break below that area could trigger further bearish correction testing 109.50 but as long as 109.50 support area hold I still prefer a bullish scenario at this phase. I think the best strategy for now is to long around 109.50 or above 111.60.

GBPJPY  Forecast

The GBPJPY was corrected lower yesterday. I think that was a normal correction and I still prefer a bullish scenario. Aggressive traders may see a good place for long position around 130.40 with stop loss below 129.30 targeting 133.00, while conservative traders can long around 129.30 with smaller stop loss and same target at 133.00.  A clear break below 129.30 could be a threat to the bullish outlook with potential bearish reversal scenario.

AUDUSD Forecast

The AUDUSD attempted to push higher yesterday, topped at 1.0075 but whipsawed to the downside, closed at 0.9975 and hit 0.9939 today. The bias is bearish in nearest term testing 0.9900. As you can see on my daily chart below, we have interesting reactions that happened around 1.0020 level. Circled areas show us that a clear break above that level push the pair higher while a false breakout push the pair lower. I personally prefer a technical bearish scenario at this phase as yesterday’s move can create a false breakout scenario, pushing the pair lower as a part of a big bearish correction scenario after hit historical high testing 0.9550 especially if price able to make a clear break below 0.9800 (double bottom formation). Immediate resistance at 0.9983 (current high). Break above that area could lead us to neutral zone in nearest term re-testing 1.0020 – 1.0075 resistance area.

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