21st August 2015 Market Outlook

Japanese Yen – USD/JPY fell significantly lower into its 123.01 support level after price breaks the the triangle chart pattern as well as the 123.79 support level as we expected in our 19th August 2015 Market Outlook and 20th August 2015 Market Outlook. Traders who went short as we recommended may once again consider taking partial profits at the 123.79 support level while trailing the stops to lock in the profits. If price breaks the 123.01 support level, we are then likely going to see price continue to move lower into its next key support level at 120.47.

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Euro Yen – EUR/JPY rally higher after price rejected its 137.32 support level as we expected in our 18th August 2015 Market Outlook and 20th August 2015 Market Outlook. Traders who went long at the 137.32 support level may consider holding onto the long position as price is likely going to rally higher into its 141.07–140.61 resistance area in the coming days. However price is currently trading at its first minor resistance level which is the recent swing high which may cause price to pause or pullback before rally higher thus conservative traders who have open long positions may consider taking partial profits off the table at the recent swing high but as long as price remains above 137.32 support level, we remain bullish bias and price is likely going to rally higher in the coming days.

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Euro Pound – EUR/GBP broke its 0.7169–0.7160 resistance area this morning which opens up the door for potential further gains in this market. Given that the momentum had turned bullish after price broke the 0.7169–0.7160 resistance area, traders may consider buying into this market if price pullback to the 0.7169–0.7160 support area (Previous resistance area) as price is likely going to continue to rally higher into its next resistance level at 0.7223.

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