Another crazy day yesterday with huge volatility in all the crosses. GBPJPY moved 330 pips on a single day. Can you imagine that?? And yesterday was another day which showed the power of supports and resistances. For GBPJPY, if you take the low of May 11 and the high of June 5 and plot the Fibo, you can see the 50% at 239.7 and the 61.8%(from the top) at 238.9. Lot of traders expected a bounce from the 50% (which it did on May 30) but it broke that and bounced exactly from the 61.8% (check your lows for yesterday and you will see). Will any indicator in the world tell you the exact point of bounce(within 3-4 pips) of a 330 pip move? No. Only supports and resistances will. I strongly feel that the crosses will recover today and continue to recover if only the Dow jones will cooperate.. I have a feeling that the dow jones will bounce today and so will the crosses. Let see. Be careful though..
Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.10. If that is broken, next support is at 120.70 which is a very strong support and the final major support is at 120.50. On the topside, the resistance is at 121.48 and then at 121.70 and final major resistance at 122.10.
EURJPY - Important support at 162.50. If that is broken, next support is at 162.25 and the final major support is at 161.80. On the topside, the resistance is at 162.90 and then at 163.30.
GBPJPY - Important support at 239.10. If that is broken, next support is at 238.85 and the final major support is at 238.42. On the topside, the resistance is at 240.10 and then a major resistance at 240.65.
Lets hope for a good day for the longs today..
Happy Trading !!!
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