FX next week: USD/JPY, USD/PLN, EUR, DXY, GBP

Brian Twomey Brian's Investment

USD/JPY traded from 130.49 to 131.75 or 126 pips then dropped 136 pips to 130.39. USD/JPY then traveled 249 pips to 132.88. USD/JPY began the week at 129.00's vs the vital line at 125.00's.

Overall, USD/JPY traded 300 pips and right back to the number 3 to 300 pip ranges. Broken down, USD/JPY traded 75 pips per day or 1/2 the allowable distance to a day trade. Yesterday, USD/JPY rose from 131.58 to 132.65 or 107 pips. After 10 am, USD/JPY traded 22 pips or essentially nothing.

The operable time to trade USD/JPY and JPY cross pairs is 4.15 am EST. Interested in Japanese money markets for interest rates, JGB, FX Forwards and Swaps then see the Tokyo Tanshi company.

GBP/USD since the BOE raise traded 170 pips or 34 points per day since last Thursday. For BOE, GBP/USD traded 78 pips down and 70 pips up for a difference of 8 pips. What does the raise mean, a difference of 8 pips and no meaning works as GBP/USD landed in the same place where it started.

Meanwhile on BOE Day, USD/JPY traded 135 pips, GBP/JPY 192 pips, EUR/USD 106 pips, EUR/JPY 135 pips to match USD/JPY for a double trade. GBP/USD was not the focus for BOE day.

USD/JPY's big line for higher exists at 133.80. The only point located at the topside is 133.18. Any price above 132.72 is good to go for shorts to target 131.32 easily. The overall bottom target for the next 24 hours to cover Friday is 130.65. Next longer term targets 128.96 and 127.33.

Note 133.18 to today's traded prices: 132.59, 132.67, 132.75, 132.84, 133.01, 133.09, 133.18. The Statistics are perfect;y accurate and perfect to the central banks especially the BOJ.

Bottoms: 131.84, 131.92, 132.00, 132.17, 132.41.

The long term view seen in USD/JPY is from 104.00's to 144.00's.

GBP/JPY any price above 161.99 is also good to go for shorts and targets the same old levels at 159.06, 158.60 and 157.25. Watch for the break at 161.84.

DXY broke below vital 102.94 to trade lows at 102.36. DXY next week will struggle to trade 103.00's and good for USD/JPY, JPY cross pairs and USD shorts.

Overall DXY traded 81 pips this week and forces 50 pip trade days for EUR/USD and GBP/USD while holding up downside progress to wide rangers EUR/AUD, GBP/AUD, GBP/NZD and EUR/NZD.

AUD/USD awaits for the break at 0.6720 to move higher. AUD is a dead issue due to DXY's non movements.

NZD/USD holds steady above vital 0.6210. The next line above is located at 0.6261.

GBP/USD trades massive overbought and targets lower to high 1.2100's and above vital 1.2103.

EUR/USD also trades overbought and in no threat to upside momentum above 1.0636. Next break to target 1.1048 is located 1.0922. EUR/USD is currently 60 pips from the 1.0922 level.

EM

USD/PLN's big line break at 4.4265 will struggle to break as DXY is on a trend lower however slowly.

Below 4.4265 long term targets 4.2988, 4.2147 and 4.1423. USD currencies as USD/EM are all located in the same position as USD/PLN as all are traveling miles lower from current levels.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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