Euro Yen – EUR/JPY fell into its 133.73 support level after price rejected the 138.01 resistance level as we expected in our 30th June 2015 Market Outlook. Traders who went short as we recommended may consider taking profits or at least scale out the position at the 133.73 support level for a 200pip gains. After price hit the 133.73 support level, it started to rally higher, we could potentially see price pullback and rejects the 135.89 resistance level in the coming days. If price indeed rejects the 135.89 resistance level, traders may then consider selling short this market to rejoin the bearish trend.
Swiss Franc – USD/CHF pullback to its 0.9405–0.9382 support area on last Friday and gap up at the open of the week which shows the bulls are in this market at the 0.9405–0.9382 support area. Since the short term trend is bullish, traders may consider buying into this market to ride on the bullish trend. As long as price remains above the 0.9405–0.9382 support area, we are then likely going to see price rally higher in the coming days.
Kiwi Yen – NZD/JPY gap down into its 81.43 key support level. Given that we are in a bearish trend, price is likely going to fall through this 81.43 key support level. However over the short term horizon, we could potentially see price bounce at this 81.43 key support level and rally into its 84.05–83.31 resistance level. Aggressive traders may consider buying into this market at the 81.43 key support level for a short term counter trend trade while conservative traders are recommended to wait for price to pullback to its 84.05–83.31 resistance level before entering short for a safer entry.
Posted on 2015-07-06 06:30:21