GBPUSD

This pair rose last week after holding the a key support level at 1.2633. With an inside candle on the weekly timeframe the market is consolidating and will continue to do so until we see a break outside of either 1.2633 or 1.2965. Longer term there is an inverse head and shoulders pattern forming with the head taken from the low last October around 1.20. A break above the neckline at 1.2965 would mark a major event and pave the way for a sustained rally. On the other hand a break below 1.2633 would keep the market under pressure and target further declines towards last year’s multi-decade lows. 

 

Possible support: 1.2633, 1.2540, 1.2380

Possible resistance: 1.2965, 1.3045, 1.3260

CADJPY

This cross was firmly higher last week but ran into a key long term level on Friday. The 200 day SMA is currently at 84.00 and the previous occasion this was tested in early May there was a clear rejection. Should price remain below this level then the range seen for the past 6 weeks from 80.60 to 84.00 will remain in tact. However a clean break above 84.00 would open up the possibility of further gains and may be seen as a change in the long term trend from down to up.

 

Possible support: 82.40, 80.60, 79.40

Possible resistance: 84.00, 84.70, 85.90

USDJPY

 Price fell lower last Wednesday to close the gap higher seen in mid-April from 109.08. The market bounced from this level to end higher on the week but now price is once more testing a falling trendline from the highs seen at the end of last year. At the start of May there was a false break above this trendline but since then it has acted as resistance on several occasions once more. There is a cluster of possible resistance below 111.75 but a clean break and daily close above there would change the outlook for this market.   

 

Possible support: 109.08, 108.15, 107.20

Possible resistance: 111.75, 112.80, 114.30