The correction lower from ahead of the psychological $1.7000 level has now closed below the 21-DMA and combined with a correcting O/B Slow Stochastic study is hinting at a deeper pullback. Bears are looking for a close below Tuesday’s low to add weight to the bearish case and see immediate focus shift to layers of support in the $1.3748-77 region and then the key $1.6704-22 region below. Bulls need a close above $1.6902 to kick start bullish momentum
The Y102.36 level confirmed its significance as resistance on Tuesday, capping the recovery from ahead of the key Y100.75-101.32 support region. Bulls continue to look for a close above Y102.36 to end bearish hopes and see immediate focus shift higher to the Y102.76-103.12 resistance region. While Y102.36 caps, bears will continue to focus on further attempts to work through the Y100.75-101.32 region with the 200-DMA noted at Y101.16.
EUR/JPY has continued to remain heavy following the break to the downside that took out the Y140.99 support level last week. The pair continues to pressure the Y139.92 support with bears favouring a break lower that initially targets the Y138.81 Feb 27 low. Bulls need a close above the Y140.94 level to ease the bearish pressure and a close above key moving averages clustered in the Y141.20-39 region to shift focus back to the Y142.46 region.
Fresh 2014 lows further confirm bearish pressure that now sees the immediate focus shift to the Gbp0.8005-35 region last seen in 2012. Initial resistance is now noted at Tuesday’s high but bulls need to see a close above the Gbp0.8191 level that previously supported to confirm an easing of bearish pressure. Overall a close above the 21-DMA is needed to see focus shift back to the Gbp0.8257-67 region where key moving averages are noted