Daily Forecast for Crosses: May 17

By @ibtimes on

EURJPY Forecast

The EURJPY attempted to push lower yesterday, slipped below 114.00 but whipsawed to the upside after found support at 113.49 (which is also Friday’s low) and now traded back above 114.00. The bias is neutral in nearest term. As you can see on my h4 chart below price still moves inside the minor bearish channel still suggests more bearish intraday bias at this phase, which can only be cancelled by a violation to that minor bearish channel and a clear break above 116.00. On the downside we need a clear break below 113.49 to continue the bearish scenario still targeting 112.05. Immediate support at 114.30. A clear break below that area would change the intraday bias back to bearish testing 113.49.

GBPJPY  Forecast

The GBPJPY didn’t make significant technical move yesterday. The bias remains neutral in nearest term. I still prefer a bearish scenario at this phase but would need a clear break below 130.20 support area to reactivate my bearish intraday mode, testing 127.77.  Immediate resistance at 132.00. A clear break above that area would change the intraday bias to bullish testing 132.97 but I am interested to open a short position around 132.97 due to a good risk – reward ratio.

AUDUSD Forecast

The AUDUSD was volatile but indecisive yesterday. Price slipped below 1.0540, bottomed at 1.0512 but whipsawed to the upside, hit 1.0641 and closed at 1.0561. The bias is neutral in nearest term but still within a strong bearish intraday outlook. On the upside, a clear break above 1.0641 could change the intraday bias to bullish testing 1.0700 but as long as price stays below the trend line resistance I still prefer a bearish intraday outlook. On the downside, a clear break below 1.0512 would change the intraday bias to bearish testing 1.0440 – 1.0388. Combining technical view and risk – reward ratio, the best place to have a short position is around 1.0770 resistance area.

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