Japanese Yen – USD/JPY fell significantly lower after price breaks the triangle chart pattern as we expected in our 19th August 2015 Market Outlook. Price seems to found support at the 123.79 support level. If price rejects this support level, we are then likely going to see price bounce off higher from here but if price breaks this support level, we are then likely going to see price continue to move lower in the coming days and may retest its 123.01 support level in the near term.
Euro Yen – EUR/JPY rejected its 137.32 support level yesterday which shows that the bulls are still in this market. Given that the momentum is bullish at the moment after price breakout away from the consolidation, traders may consider buying into this market as the price is likely going to continue to rally higher in the near term. There’s no immediate resistance level above current price as the next resistance level is at 141.07–140.61 which offer traders decent profit margin to trade the long side.
Gold – Gold is making its way back to its 1143.00 resistance level. Since the overall trend is still bearish, traders may look for shorting opportunity at the 1143.00 resistance level. Ideally, we would prefer to see price rejects this resistance level or any other confirmation before shorting this market for a safer entry. As long as price remains below the 1143.00 and 1163.00 resistance level, we remains bearish bias and traders may consider looking for shorting opportunities around these two resistance levels to jump on this long term bearish trend.