We have witnessed an impressive move from the JPY as it has finally managed to “fight back” for its value against the USD and other major currencies (EUR, GBP, AUS…). During the last 3 trading sessions we saw some correction on the USD/JPY as the price action moved out of our trading channel and the RSI went from 60 to 54 after a long clean uptrend. However, this is a healthy correction before the next leg up, so for now the resistance lines for the uptrend are 104.9 and 105.56 (the channel) and supports at 103.4 and 103.
On the 4h chart the gold found strong support and the price action gave us the conformation for a correction. We can see that the gold holds above the 1200 pivot line and crosses all the Fibonacci resistance lines. This New Year rally stopped only at the 50 DAY M/A around 1247 and we can expect further upside with new targets 1251 and 1272. On the downside, the market is expected to remain near the Fibonacci lines.
The pair found strong resistance at 1.5481 and was unable to continue its strong move of 2013. On the 4h chart we're getting double top formation with a neck line at 1.5306 (which already been brook) and first down target at 1.5016. This down target is also the first Fibonacci support (38.2%) and we expect some sideways trading around this area, below that are the 50% and 61.8% or 1.4832 and 1.4647 respectively. Before any serious uptrend the pair will find resistance at 1.52306 (neck line) and 1.5481.