Painful Progress: Aussie Corrects, USD/JPY Low Remains Intact
Ian Copsey | Jun 26, 2014 01:33AM ET
The market is still trying to drive from London down to Brighton but seems intent on taking a route via Edinburgh. Of course, en route to Edinburgh, the market is going via Cornwall and East Anglia to reach the Scottish city before returning down south to Brighton.
The structures are developing not only agonisingly slowly but with whips and consolidations that are painfully difficult to analyse. However, while I had my doubts yesterday, it seems that we are on that circuitous route and one that looks like it will remain developing in the most convoluted manner that it can possibly muster. I really do feel the market could do with a long session with a psychiatrist.
The result of the above blurb? Just to say that we can expect more of the same. We either have to sit through countless swings in each direction and wait until the targets have been met or best sit out to avoid stops being hit. However, the good news is that my original outlook (in terms of intermediate projections) are still valid.
The Aussie corrected…but then pushed above resistance. It implies one of two things but for now the risk remains higher. Whether this will push back above 0.9437-60 or not, will be the key outcome. Even if it does make that break I don’t think it’ll happen today…
USD/JPY…it’s motto is “why take the direct route when there’s opportunity to visit Edinburgh…” Having said that, the 101.60 low remains intact. Indeed, this is the line between bullish and bearish. What we really need now is more solid gains to break above a key swing high. However, in this current market there’s always a risk of sluggish momentum to keep us in limbo for a while. This certainly looks possible from the expectations in EUR/JPY. I am expecting another drop at some point…but I think that point is a little way above current levels. This tends to point to continued limited development in both USD/JPY and EUR/USD…
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