USDJPY: The USDJPY has opened the trading week moderately higher at the early open of the European session. Price Action has formed a bearish engulfing pattern on the weekly time frame which is invective of a bearish sentiment. Price has come off aggressively on Wednesday last week and is trading sideways since then. Our call is bearish as long as we are below Wednesday’s high at 101.18, leaving room to sell rallies before the resumption of the next leg down. Immediate targets are at 98.20, last week’s lows followed by 97.2. A move above 101.18 will negate our outlook and turn weekly bias to bullish with target objectives at 101.90 followed by 102.50

Weekly Bias for the USDJPY is bearish as long as we are below last Wednesday’s highs
 
NZDUSD: The kiwi is struggling to correct higher and has encountered resistance as sellers emerged at 0.7970 the last week’s high which resulted a decline of nearly 250 pips and brought the kiwi back to the consolidation levels of the last 4 weeks. The trend is still down and preferred strategy is being bearish as long as we are below 0.7880 with targets objectives at 0.7684 the monthly low initially and the a move to a new yearly low. A move above 0.7880 will negate our bearish outlook and would turn weekly bias to bullish with targets at 0.7968, the last week high followed by 0.8003. 

Kiwi is struggling to correct higher

SP500: The index has posted a positive close for 10 consecutive days. The index continues his bullish momentum post the FOMC statement from last week and is trading near the all-time highs posted on May 19th 2013. Weekly signals remain bullish for the SP500 but extreme cautious is needed when taking a long position as indicators are at overbought extremes. If the all-time high manages to hold as resistance we could see a selloff of the index initially towards 1652 followed by 1643 and 1635. An alternative scenario is a break of the all-time high with targets at 1700.  

SP500 closing positively higher for 10 consecutive days.