The break and close above the $1.6780 resistance level stalled just short of the falling daily trend line off 2014 highs but did manage to close above the 21-DMA which provides come comfort for bulls. To confirm an easing of bearish pressure and see immediate focus shift to the $1.6919 May 21 high bulls now look for a close above the falling daily trend line. Daily studies are correcting from O/S and are supportive of further topside.
The pullback from ahead of Wednesday’s high has eased the bullish pressure a little but bears still need to see a close below the 55-DMA to hint at lower levels and below Y101.89 to shift focus back to sub 200-DMA closes. Of some concern to bulls are the O/B daily tech studies that are looking to correct lower and adding weight to the bearish case. In saying that, while the Y101.89-102.23 region supports bulls target retests of the recent highs.
The dip below the 21-DMA was short lived with the EUR/JPY bouncing sharply from just short of the 200-DMA to manage a relatively bullish close. Initial support is noted on the hourlies at Y139.64 but bears will look for a close below the 21-DMA to confirm an easing of bullish pressure and target the Y137.97-138.50 region. The sharp bounce has seen bullish focus re-emerge with bulls needing a close above the Y140.27-99 region to shift focus to 2014 highs
EUR/GBP traded at fresh 2014 and 18 month lows overnight before bouncing sharply to remain little changed on the day. Initial support has developed on the hourlies at Gbp0.8120 today with bears needing a close below to ease the pressure that has returned to the 21-DMA. Overall bulls need a close above Gbp0.8159 to confirm a break of the 21-DMA and shift focus back to the Gbp0.8206-35 region and Thursday’s bounce increases the likelihood of this.