$EUR & $JPY for Asia

• kevinmhughes
• January 19th, 2010

What a boring couple of days in the FX market, in my opinion, I live my life in 1 & 5 min charts.  It hasn’t been totally boring, there was a lot of money to be made out there.  Here is what I am looking at for tonights (1/18/2010) Asian trading session [yes during the times Todd Sullivan will be on StockTwitsTV].

The $EURUSD broke down out of the wedge I pointed out on Monday (here’s the post about it) and hit a low of 1.4253 before bouncing back to as high as 1.4306; and guess what it is doing now?  Yep, forming another wedge!  With a breakdown below 1.4280 we will be heading into the 1.41 area (probably consolidating around the mid 1.41 range).  If the wedge is broken down and the pair runs to the upside, I believe the next resistance is 1.4350.  BTW, I am VERY bullish on the $USDX so I do see the $EURUSD falling to the 1.37 – 1.36 level by summer (if not and hopefully earlier).  Here is the chart:

The $USDJPY is another interesting pair…  it’s currently sitting and fighting with the 91.21 resistance…  per my previous statement (last paragraph), I’m bullish on the $USDX, so I see the resistance breaking down and the $USDJPY running to the 92.00 level by London trading.  If for some reason the resistance holds and the pair retraces and breaks below 90.87, we will see the 90.32 level (in my opinion you need to watch the price action that’s why I put my levels for both directions.  Here’s the chart:

Have a great evening!

Kevin M. Hughes is the President/Head Trader at K.M. Hughes & Associates, Inc. which is a currency trading firm based in Charlotte, NC.  If you would like to learn more about Kevin or his firm, please visit www.hughesincorporated.com

Tickers: $EURUSD, USDJPY

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