Good day,

I trust that you all had a great weekend.

<span style="text-decoration: underline;"><strong>JPY PAIRS:</strong></span>

From the weekends PREMIUM SERVICE blog, I was going to analyse the JPY pairs this morning. However, my observations are that until the USD/JPY breaks below 101.50, it is not really worth getting too excited. Equities/ Futures are trading to the long side which is keeping the JPY supported at the moment and the USD a little stagnated.

However, here is the  macro view that I have: The EUR/JPY needs to break below 140.00, and, in fact , I would like to see a daily close below 140.00. This would confirm a greater downside move. The CHF/JPY also looks to be trading very heavy.

My  JPY trades would be EUR/JPY and CHF/JPY in addition to the USD/JPY. Should I get the urge to trade these or set up some limit orders I will advise you via twitter.

<span style="text-decoration: underline;"><strong>EUR/USD:</strong></span>

I read over the weekend that Goldman Sachs are targeting 1.3675 as their short limit. I see this pair moving a lot lower, but at 1.3675 there is a confluence of Fibonacci levels. This may produce a bounce to sell into to enjoy the next move lower hopefully to  1.3450 - 1.3500.

<span style="text-decoration: underline;"><strong>GBP/CHF:</strong></span>

RADAR TRADE SET UP: ( I HAVE PLACED THIS ORDER WITH MY BROKER)

<a href="https://weeklyfxdrivethru.com/wp-content/uploads/2014/05/GBPCHF-DAILY-12052014.png"><img class="aligncenter size-large wp-image-3665" src="https://weeklyfxdrivethru.com/wp-content/uploads/2014/05/GBPCHF-DAILY-12052014-1024x424.png" alt="GBPCHF DAILY 12052014" width="1024" height="424" /></a>

&nbsp;

Working with round numbers 1.5000 will be a big level. We are currently trading at 1.4975.

1. My proposed trade here is to go long after 1.5000 is confirmed.

2. Place a stop at todays lows of 1.4918.

3. Add to the trade on a break above the 100% Fibonacci level at 1.5120.

4. Then move your stop to break even.

5. Your initial target should be the 123% extension at 1.5380

6. Depending on your trade size, you can of course half your position at any time as per your TRADING PLAN guidelines.

&nbsp;

Finally, to A from DUBAI - Did you enter short the NZD/USD or are you waiting until it breaks 0.8600 (My level to add to my existing short)? Right now, this pair is getting a lift due to the U.S. equity futures. If you are still holding out on entering, the next resistance at 0.8645 would appear to be a good area to try a short back to 0.8600 and hopefully below, but watch equities we may consolidate today.

Best of luck today,

Scott