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Published on Oct 25, 2016
The
USD/JPY pair initially rallied during the day on Tuesday but found the
105 level be far too resistive yet again. However, we did reach higher
this time so we ended up forming a shooting star which tells us that the
market could very well pullback. I believe that this pullback is simply
an opportunity to start buying at lower levels, but I see quite a bit
of support also that can get me interested in going long as well, as the
100-day exponential moving averages just below, and of course the 103
level continues to offer quite a bit of support. The alternate scenario
would be to break above the 105 level, which at that point in time would
be reason enough to go long as we would have cleared a significant
resistance area.
Published on Oct 25, 2016
The
Euro initially fell during the day on Tuesday but bounced enough to
form a little bit of a hammer. While this is a positive candle, quite
frankly I’m not that impressed. After all, when you look at the chart
you can see that we have been sold off in a very massive way, and almost
in a straight line. In other words, this is a market that desperately
need some type of bounce. Once we get it, we could very well see an
exhaustive candle above that signals its time to start selling again. If
we break down below the bottom of the range for Tuesday, that is also a
selling opportunity. Ultimately, I have no interest in buying because I
recognize of the 1.10 level above is essentially the “ceiling” in this
market and I think will continue to function as such.
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