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USDJPY & USDCHF Weekly Technicals: 12/8

by on December 9, 2013 3:48 am BST
 

The USDJPY has a great showing last week on a far weaker yen, but the weekly technicals is showing price action in a tough spot. Price action is currently in a defined supply zone indicated by the 10-year weekly chart:

WK Chart of USDJPY (10-year)

WK Chart of USDJPY (10-year)

Price action is currently where the USDJPY seen a large pullback the last time this current area was breeched. The 2013 high was made and was sold. Price swiftly fell from 103.72 to under 94 in a month’s time. However, a break through the upside leaves room for USDJPY to advance to 105 before seen the next level of significant resistance. With any confirmed supply zone, the longer price action lingers, the more likely a decent sized pullback will happen.

The three-year weekly chart shows the strong triangle breakout, but the trend’s momentum is quickly fading even with the weaker yen. The ADX has been under 20 since September. More importantly, the +DMI is flatlining. Once is begins to tick lower, price action should soon follow.

A pullback to 101.23 is likely with further potential to the 20 EMA.

WK Chart of USDJPY (3-year)

WK Chart of USDJPY (3-year)

The dollar has been wafting. Stronger data out of the US was not enough to boost the dollar, and its proxy, USDCHF, has fallen. The weekly chart of the USDCHF shows price trading mostly within a side ways channel over the last three years. Price occasionally traded above or below the channel but reverted back to the range shortly after.

Last week’s decline pushed USDCHF lower through the channel, and price action is hanging onto minor support levels near .8920. Resistance will be the lower trend line of the channel at .90. Resistance will be found at .9125, while an interesting lower target of .8590 is possible if the dollar continues to fall out of favor.

WK Chart of USDCHF

WK Chart of USDCHF

The daily chart shows that the yearly low of .8889 is likely, potentially .8870. Probably upside lies at .8945 and .8986.

1D Chart of USDCHF

1D Chart of USDCHF