The USD/JPY pair fell slightly during the course of the day on Thursday, as we continue to see a bit of softness in this pair. However, there is a significant amount of support below so we do not think that this market going to absolutely fall apart at this point. We think it’s going to be more or less a slow grind, and of course short-term rallies could be selling opportunities as well. The 115 level should continue to be a very resistant area, so it’s not until we get above there that we can even remotely think about buying this market.
EUR/USD pair fell during the day on Thursday, as we drove lower and trying to reach down to the 1.1050 level. This is an area that we have suggested previously as being support, and it should be again here. If we get any type of supportive candle or a bounce somewhere in this area, we are more than willing to start buying yet again. If we do get that bounce, we could go as high as the 1.13 level above, which was the recent high. If we break down below the 1.10 level however, we should drop to the 1.08 handle.
The GBP/USD pair initially tried to rally during the day on Thursday, but turned back around to form a bit of a shooting star. The shooting star of course is a negative sign, and that of course means that the market should continue to find resistance above. Ultimately, that is a sign in our opinion that we should continue to struggle, so short-term rallies will be selling opportunities as far as we can see. We have no interest in buying, as we recognize that the market looks very soft at the moment.