LOOKING TO SELL INTO RALLIES; DEEPER SETBACKS SEEN AHEAD
GbpJpy: The bearish outside day on Wednesday, after posting fresh 2009 highs in overbought territory, now warns of deeper setbacks ahead and we would expect to see a pullback to retest the previous trend highs from early April by 151.55 at a minimum, before considering the possibility of bull trend resumption. As such, any intraday rallies back above 159.00 today are viewed as excellent opportunities to establish counter-trend short trades. A closer look at the hourly chart below shows some solid internal resistance by 159.20, with some additional resistance in the form of the 78.6% fib retrace off of the latest moves by 159.45. We will look to use this zone as an entry for our short trade today, if given the chance. Strategy: SELL @159.40 FOR A 154.00 OBJECTIVE, STOP @162.10. Recommendation to be removed if not triggered by NY close (5pm ET) on Thursday.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel's reports in a more timely fashion, e-mail jskruger@fxcm.com and you will be added to the "distribution" list.
Joel Kruger publishes 6 daily pieces:
“Tech Talk” – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade.
Monday-Friday (between 5:30am-6:30am EST)
“Morning Slices” – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).
Monday-Friday (between 6:30am-7:30am EST)
“Indicator of the Day” – A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)
“Cross Country” – A Midday Fundamental Update, along with Technical Analysis of Selected Cross Rates.
Monday-Friday (between 10:30am-11:30am EST)
“Scandi Daily” – A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact Nordic@fxcm.com if you would like to be added to distribution.)
Monday-Friday (between 11:30am-12:30pm EST)
“Daily Classical” – A Daily Technical Overview of the Major Currencies.
Monday-Friday (published between 2:00pm-3:00pm EST)
