Today’s FX Thoughts  -  February 16th                                

Today I am most Confident about USD/JPY:

The Dollar continues to complete its multi-month bottoming formation which has been developing since last July. Once completed (upon a sustained break above the 78.65 level) the Dollar will be poised for a strong advance 79.50 and 80.25, enroute to the mid 82.00’s. Adding to this underlying Bullish potential is the ultimate (sustained) break above Downtrend resistance, extending back to June, 2007 (see Daily & Weekly charts below).

Today, until the Key 78.65 resistance level is cleared, I will be Buying a corrective reaction back to 78.00/77.85. I will be seeking protection on my long position if 77.60 is broken; to re-establish again once short term corrective weakness is exhausted.

This forecast – along with that for EUR, GBP, CHF, AUD and NZD – will be updated in my daily forecasting service which is emailed to subscribers in time for the European market opening. Until the end of March my daily service is on offer for $50 (to cover admin cost only). If you would like to receive my forecasts on this basis email TRL@clear.net.nz

Disclaimer: Max McKegg & Technical Research Ltd accept no liability  whatsoever for any loss or damage that may result, directly or indirectly, from any forecast, comment or opinion, information or omission, whether negligent or otherwise, within this report.