Daily Forecast for Crosses: May 21

The EURJPY attempted to push lower yesterday, bottomed at 109.53 but whipsawed to the upside and traded around 112.78 at the time I wrote this comment. 110 – 109 area seems to be the nearest term bottom so far. On h4 chart below we can see price still move inside the bearish channel but price is now testing the upper line of the bearish channel. Looks like the intervention threat able to create fears to the sellers because price tend to rebound significantly higher after touch a new low as traders are protecting their profit due to intervention rumor. A violation to the bearish channel could trigger further upside recovery testing 114.80 area. Immediate support at 111.01 (current low).

GBPJPY Forecast

The GBPJPY attempted to push lower yesterday, bottomed at 126.75 but whipsawed to the upside, traded higher around 129.34 at the time I wrote this comment. Price is now testing the bearish channel. As long as the bearish channel hold, the bearish scenario remains intact in nearest term but if it is violated to the upside further upside recovery testing 132.79 (yesterday’s high) can be expected. Immediate support at 127.71 (current low).

AUDUSD Forecast

The AUDUSD continued its bearish momentum, bottomed at 0.8070 earlier today in Asian market but whipsawed higher testing 0.8250 area at the time I wrote this comment in high volatile market. Another pullback above 0.8250 area could trigger further upside recovery but that would be a no trading zone for me. The pair has been moving down strongly this week without significant upside correction so weekend might be a good time for that as traders may take some profits. On the downside, potential bearish target around 0.8000 psychological level.

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