Bulls take a little comfort in the euro finding support ahead of the recent 2014 and 2 year lows. O/S daily studies and the proximity of the Bollinger band base remain key concerns for bears but bulls look for a close above $1.2717 to ease bearish pressure whereas above $1.2902 is needed to hint at a bigger bounce. While $1.2717 caps immediate bearish focus remains on the $1.2465 Aug 28 2012 low with overall focus on the $1.2042 2012 low.
RES 4: $1.2822 21-DMA
RES 3: $1.2816 Low Sept 22 now resistance
RES 2: $1.2764 Hourly resistance Sept 25
RES 1: $1.2717 High Sept 29
LPRICE: $1.2654
SUP 1: $1.2613 Hourly support Oct 2
SUP 2: $1.2571 2014 Low Sept 30
SUP 3: $1.2465 Low Aug 28 2012
SUP 4: $1.2241 Low Aug 10 2012
After having previously supported, the $1.6162 level is now initial resistance as bears remain firmly focused on the $1.6012-91 region where key WMAs are located. Bulls now need a close above the 21-DMA to confirm an easing of bearish pressure and above $1.6343 to shift overall focus back to the 55-DMA ($1.6559). Overall bears look for a close below the 200-WMA to add weight to the bearish case and potentially target 2013 lows around $1.4818.
RES 4: $1.6343 Hourly resistance Sept 25
RES 3: $1.6287 High Sept 30
RES 2: $1.6253 21-DMA
RES 1: $1.6162 Low Sept 16 now resistance
LPRICE: $1.6131
SUP 1: $1.6091 100-WMA
SUP 2: $1.6085 Bollinger band base
SUP 3: $1.6052 2014 low Sept 10
SUP 4: $1.6012 200-WMA
USD/JPY continued its sharp correction lower from the failed attempt to gain traction above the Y110.00 level with the sell-off pushing the pair below the Y108.25-46 support region. The 21-DMA is currently supporting with bears needing a close below to hint at a deeper correction back towards the Y104.30-70 region. While the 21-DMA supports bulls remain focused on Y110.68 Aug 2008 monthly highs.
RES 4: Y110.09 2014 High Oct 1
RES 3: Y109.71 Hourly resistance Oct 1
RES 2: Y109.37 Hourly resistance Oct 1
RES 1: Y109.12 Alternating hourly support/resistance
LPRICE: Y108.81
SUP 1: Y108.06 21-DMA
SUP 2: Y108.00 Low Oct 2
SUP 3: Y107.41 Previous daily resistance now support
SUP 4: Y106.77 Low Sept 16
The correction lower from the Sept monthly high continues with the close below the 100-DMA Wednesday seeing immediate focus return to the 2014 low. Initial resistance is now noted at the Y137.94 level with bulls needing a close above to provide some breathing space. Overall a close above the 100-DMA is now needed to confirm an easing of bearish pressure while a close above the 21-DMA is needed to hint at a shift higher in focus.
RES 4: Y138.80 High Oct 1
RES 3: Y138.55 21-DMA
RES 2: Y138.09 100-DMA
RES 1: Y137.94 Low Sept 30 now resistance
LPRICE: Y137.76
SUP 1: Y137.28 Hourly support Oct 2
SUP 2: Y136.36 Bollinger band base
SUP 3: Y135.73 2014 Low Aug 8
SUP 4: Y134.10 Low Nov 20 2013
Recent attempts to take out the 2012 low have been well and truly rebuffed with the sharp bounce Thursday easing bearish pressure and shifting immediate focus to the Gbp0.7891-97 region where the 21-DMA is located. Bears now need a close below Gbp0.7830 to ease the renewed bullish pressure and below Gbp0.7802 to reconfirm focus on the 2012 low. Bulls look for a close above Gbp0.7897 to target Sept monthly highs.
RES 4: Gbp0.7973 100-DMA
RES 3: Gbp0.7929 55-DMA
RES 2: Gbp0.7897 Hourly resistance Sept 18
RES 1: Gbp0.7891 21-DMA
LPRICE: Gbp0.7838
SUP 1: Gbp0.7830 Alternating daily support/resistance
SUP 2: Gbp0.7802 Alternating hourly support/resistance
SUP 3: Gbp0.7766 2014 Low Sept 30
SUP 4: Gbp0.7764 2012 Low July 23 2012
