TECHNICAL ANALYSIS UPDATE

04 APRIL 2014 TRADING SUMMARY

Asset Class Date Direction Entry Low Profit Target High Profit Target Stop Loss USD/JPY 04/04/2014 Short 103.913 103.200 102.625 104.150

USD/JPY SHORT TERM OUTLOOK (~ 2 WEEKS)

The Duomo Capital proprietary system has produced two key levels in the current region for USD/JPY which have now become active. The highest level of 104.156 was rejected immediately by the market, which was followed by a failure to close significantly above the next level of 103.920. These levels are indicated on the chart above with red lines. To add confluence to this, there is a merging of two upward trend lines (white dotted lines) which the pair is failing at. This adds more downward momentum from here as we are clearly near the top of the trend channel. In terms of price action, this is represented by the strong move upwards which has been seen, followed by the market clearly losing steam on 3rd April, with a daily close of a small candle with a large wick. Our upper exit target based on the Duomo Capital proprietary system (blue line on the chart) is at 103.200, where part of the position should be closed in profit and stop loss moved to break even. This is followed by the next target at 102.625 where the entire position should be closed. The following points should be considered as areas of caution:

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A daily close around the area of 103.286, therefore matching the swing high of mid-March 2014. A very strong NFP and unemployment figure further strengthening the USD against JPY.

This research article does not constitute investment advice.