This week’s focus encompasses 2 interesting and vital currency pairs: GBP/AUD and USD/JPY.

GBP/AUD in March traded 2.0800’s and last week achieved 1.7900 lows. GBP/AUD at a 2900 pip drop far surpassed the allowable 2500 pip statistical boundary criteria built in for a vast majority of our 28 currency pairs.

GBP/AUD violated the 2500 pip boundary by 400 pips and sits in a massive range from 1.7700 lows to 1.9300’s. Current GBP/AUD at 1.7900’s as traded last week and 1.7700’s multi year range lows, offers an extraordinary long term long trade.

The context to a long term trade coincides to newly updated targets for GBP/USD at 1.3100’s, GBP/CHF at 1.2600’s and GBP/JPY at 141.00’s. GBP/AUD as a wide range currency pair within the GBP universe is consistent to GBP/CAD at multi year range lows at 1.6900’s.

Add the 400 pip violation to 1.7700’s offers a 1.8100’s target. The 2 big points higher must break 1.8170 and 1.8291 then GBP/AUD contains much daylight between 1.8200’s and its next significant points at 1.8400’s and 1.8500’s.

USD/JPY at current 106.00’s is again at critical 4 year lows at 105.00’s and 106.00’s. Nothing changed for USD/JPY to 105.00’s and 106.00’s bottoms as a significant bounce was seen each time 105.00’s and 106.00’s traded. Many forecasts were devoted to 105 and 106 bottoms over the past 3 years.

Current crucial lows for USD/JPY resides at 106.48, 105.98 and 105.87. USD/JPY closed at 106.84. A break of 105.87 targets 102.00 lows. Higher must break 107.66, 107.77, 107.90 then targets 108.70 easily.

Weekly Trades


Short 1.1219 and 1.1241 to target 1.1138.
Short below 1.1124 to target 1.1005.
Long 1.1005 to target 1.1064.

Long 1.1138 to target 1.1212


Long 106.57 and 106.68 to target 107.51.
Long 107.77 to target 108.46.
Short 108.46 to target 107.90.


Strategy. Long 1.8028 and 1.8001 to target 1.8390


Long 1.1734 and 1.1701 to target 1.2009.
Long above 1.2057 to target 1.2151
Short 1.2009 to target 1.1922.


Brian Twomey