GFSignals team provides a week forecast for USD/JPY
Last week USD/JPY couple course sloped down steeply and punched the support levels above 116 closed the week in the area of 115.80. This situation gives a huge technical potential for the further couple course decline to the area 113.00-114.00 This situation is described by one of the scripts viewed in the last review.
This week the following USD/JPY couple range variations are posible:
1. Medium decline to 115.00
We are expecting couple course decline. It can be medium during the week with the maximum target of 115.00 (the first script) but can be steepper with the main target achievement of the area of 114.00 (the second script). Within the bounds of the first script it is not improbable a short-term upward movement during the week to 116.60 following which a down impuls be next. A breakout of 116.60 will lead to the third script development.
The chances of this script development are 50%.
2. A downward trend to 114.00-115.00 range.
A course decline may be rapid with a target achievement in the area of 114.00. Since it is reached a rising correction rebound will follow.
The chances of this script development are 40%.
3. An upward trend above 117.00.
We don’t leave out a couple rises above 117.00. The reason is a course technical need to test a broken neck line below (117.00/40 region). It will be a classic script of a "head-and-shoulders" shape. After such an upward trend further course decline to the calculated drop target area is to be expected.
This is the smallest outcome.
Major resistance and support level for USD/JPY
Resistance
116.00 – 116.60 nearest resistance level – broken support
117.40 level of “head and shoulders” figure
117.80 long time trend line since 1998
118.60 November resistance
Support
115.60 local supports from last week – recent minimum of November, also September minimum
115.00 expected intermediate support
114.00 August monthly minimum
113.40 July monthly minimum
