As of current price, the pair is seen touching gloves with the 1.01 handle, which happens to sit just below a H4 supply base coming in at 1.0155-1.0129. Daily action on the other hand, is flirting with a coming in at 1.0086, while weekly price recently penetrated through the top edge of a at 1.0092-0.9928. Of particular interest here is the weekly located directly above the current weekly supply at 1.0239-1.0131, as the H4 supply at 1.0155-1.0129 also denotes the lower edge of this weekly , making the H4 zone a beautiful base to short from.
Our suggestions: Given the recent breach seen above the current weekly supply, sellers’ stops have likely been triggered. This may call for a move north up to the aforementioned weekly , and by extension, a break above the 1.01 handle into the above said H4 supply. This, we believe, is a sound area to sell from. We currently have a pending sell order set on the USD/JPY , however depending on what level is hit first, we may take a short on this unit at market from 1.0128, with a stop placed above at 1.0157.
Data points to consider: Gov . Board member Maechler speaks today at 10.30am, along with FOMC member Bullard, followed by two other members taking the stage (Dudley/George) at 2.30pm GMT .