Dollar/yen and Aussie/USDÂ both see interesting technical patterns.
The team at SocGen examines:
Here is their view, courtesy of eFXnews:
USD/JPY is forming a probable double top and is testing the confirmation level near 122, notes SocGen.
“It’s noteworthy that the pair has also breached a steeper daily upward channel within which the recovery from October evolved. A break below 122 will lead to a correction towards 120.20, the projected target for the aforementioned pattern and even towards 118.20, the monthly channel limit.
Multi decadal trend resistance at 126 remains a key level, which decides if another leg of up move occurs,†SocGen projects.
Turning to AUD/USD, SocGen notes that it appears to be consolidating within a pattern similar to triangle.
“It has given a break above a descending trend line suggesting possibility of further rebound towards 0.7350, triangle limit.
However, the rebound should be corrective in nature and daily channel limit at 0.7500 , also April lows remains a key resistance and should cap any upside,†SocGen adds.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.
