EUR, GBP, USD/JPY, JPY Crosses: Levels, Ranges, Targets

The only significant upside break for GBP/USD dated to Jan 1999 is located at 1.4755. When GBP/USD broke 1.3200’s and 1.3300’s then massive and many break points were created to contain the downside. And as usual to contain movements. From an interest rate perspective, the current GBP price is extremely low. Most significant break points for GBP/USD are located at 1.3466, 1.3363 then 1.3311. Most important are 1.3466 and 1.3363 as breaks here would ensure a lower GBP however slow the price will travel.

What contains GBP/USD is not only its own price but GBP/JPY and GBP/JPY remains the driver to GBP/USD. GBP/JPY most significant break points are located at 153.09 and 150.34 and 150.13. Most important is 150.34 and dropping. 153.09. Recall last posts, 153.09 was 153.45 and 153.43.

EUR/USD and EUR/JPY remain in the same circumstances as GBP/USD and GBP/JPY. The EUR/USD break points are located at falling 1.1999 and 1.1854 then 1.1801. Most important are 1.1999 for higher and 1.1854 to travel lower. From interest rates, EUR/USD price is miles to high. Miles to high asks the significant question will Draghi lower interest rates. Between interest rates to high and QE, Draghi is playing with fire. Draghi’s has 2 options, lower interest rates or drive EUR/USD far far lower.

No significant break points exists on the upside for EUR/JPY dated to Jan 1999. All EUR/JPY significant break points are all supports located from 133.00’s, 131.00’s, 130.00’s and the supports continue to 126.00’s, 118. About every 200 pips exists a support point all the way to 126.00’s to 118.00’s. Most significant break points are located at 133.35 then 133.10. EUR/JPY is highly oversold.

What drives EUR/USD is EUR/JPY. What drives GBP/USD is GBP/JPY.

Continue to monitor USD/JPY like a laser bream as a far more signigicant move is ahead because USD/JPY current price location cannot sustain itself. USD/CHF remains in the same position, its price must move. USD/CAD is fine.

Only far higher for USD/JPY and USD/CHF relieves current price pressures. A 114 and 115 price in USD/JPY relieves pressures but problems remain. USD/JPY is easily a buy dips currency pair as supports are many and strong down to 110’s and 109’s. The break points are located at 112.49, 112.79 and 113.93. If USD/JPY doesn’t begin to trend higher then we will see an explosion higher.


Brian Twomey