Weekly forecast August 11-15, 2014

The pair hit the 2-year support trend line in the weekly chart, but managed to close above that. On a short-term basis, the pair was rejected twice from 50WSma and closed, trading below that. The yen benefited from the Iraq war and after the weekend the tensions were reduced. In the early Asia's session, the pair made a low at 136.74 and is currently trading at the 136.84 levels. The pair is facing strong resistance at 137.10 (20DSma). Today, the pair opened with a bearish note higher at 137.02. As long as the pair is trading below 137.11, sellers make profits. On the downside, it has a support at 136.20, below this 136 is the solid support. If this takes place, we can expect the 134 and 133.50 levels in the near term.

Support 136.20 136 134.50

Resistance 137.11 137.23 138.0

Intraday cmp 136.84

The pair was rejected from 34hr sma and it is holding the hourly support at 136.60. We recommend to sell below 136.60 with the targets at 136.25 and 136.0. On the upside, purchase above 137.15 will be gainful for a target of 137.56

A day close above 137.10, the weekly trend turns positive for 138-pending.

A day close below 136.20, the weekly trend turns negative for 134- pending.