With daily studies at lofty levels and overdue a correction the pause ahead of the recent 2014 highs is a little concerning for bulls currently targeting the $1.7198 Oct 21 2008 high. Bears need to see a close below Monday’s low to confirm an easing of bullish pressure with a close below $1.6919 then needed to hint at a deeper correction targeting the $1.6690-1.6760 region. Bulls need fresh 2014 highs to kick start bullish momentum.
USD/JPY is hinting at a break out with the formation of the triangle on the daily chart. Layers of resistance appear to outweigh layers of support which hints at a break to the downside. Overall bulls look for a close above the Y102.42 level to confirm break topside and a shift in overall focus to the Y104.13 Apr monthly high. Bears need a close below the 200-DMA to confirm a break to the downside with initial focus then shifting to the Y100.75-85 region.
The 200-DMA confirmed its significance with the failure resulting in a dip and the EUR/JPY now looking heavy with the 21-DMA noted as initial resistance. Bulls continue to look for a close above the 200-DMA to ease the current bearish pressure and shift immediate focus to the Y139.99-140.40 region where 55 & 100-DMA’s are noted. While the 200-DMA caps immediate focus remains on the Y137.70 June 16 low and overall focus on 2014 lows
Daily studies remain very O/S and overdue a correction as the EUR/GBP continues to consolidate above the 2014 low. Spikes higher have so far lacked follow through with bulls needing a close above the Gbp0.8025-32 region to confirm an easing of bearish pressure and see immediate focus shift to the Gbp0.8061-0.8104 region. While Gbp0.8025-32 caps immediate focus remains on 2014 lows with bears targeting the Gbp0.7764 2012 low overall