Trading plan for April 8
By Kira Iukhtenko
USD/JPY was the major mover on Thuesday, plummeting below 108.00. The recent nearish trend was strengthened by the dovish FOMC meeting minutes, released on Wednesday. We maintain a bearish view for the pair, targeting 100 yen in the medium term. Intermediate support is seen at 107.30 and 105.10. Bullish correction is somewhere close, but we’d recommend using it for opening new selling positions.
Meanwhile, EUR/USD remains rather resilient despite the dovish ECB minutes released today. It holds in a sideways 1.1450/1.1340 range. Pay attention: we are close to a strong resistance at 1.1500, so buying at the current levels seems to be risky. At the same time, the medium-term prospects of the pair remain upbeat.
GBP/USD found some support at 1.4050, but still remains under bearish control. Watch the UK manufacturing production data on Friday – the forecast is downbeat, so it could trigger a new wave of GBP selling. We recommend going short on a break below 1.4050.
AUD/USD holds below the former March support line. A break below the 0.7475 support could confirm a double top formation and open the way to our next target at 0.7380.