The bounce from ahead of the recent 2014 lows and consolidation above the $1.6030 level so far is providing bulls with a little confidence although layers of resistance in the $1.6135-1.6348 region will become the next hurdle. Bears need a close back below $1.6030 to reconfirm bearish pressure and immediate focus on the $1.5872-1.5940 region. Overall bulls need a close above $1.6238 to shift immediate focus to the 55-DMA ($1.6379) and overall focus to $1.6536.
Immediate focus shifts to the ¥107.60 resistance level following Friday’s break and close above the previous resistance at ¥106.67. Bulls now look for a close above ¥107.60 to add support to the bullish case with a close above ¥108.74 remaining needed to shift focus back to the ¥110.09-68 region. Bears now need to see a close back below ¥106.52 to reconfirm bearish pressure. Bears will also look for a close below the 55-DMA to add weight to their case targeting a move to ¥104.28-68.
The price action last week saw ¥134.10 confirm its significance as support with the resulting bounce having eased bearish pressure and shifted immediate focus to the key DMAs clustered ¥137.53-84. Overall this week bulls look for a close above ¥137.97 to confirm a break of the DMAs and shift focus back to 2014 highs. ¥135.75 remains initial support with bears needing a close below to reconfirm bearish focus and target ¥134.10.
Time spent above the 100-DMA was brief with the sell-off Friday and close below 55 & 200-DMAs having eased bullish pressure with attention shifting to the £0.7850-00 region this week. Bears need to see a close below £0.7850 to confirm a break of the 21-DMA and shift focus back to the 2012 & 2014 lows in the £0.7764-66 region. Bulls now need a close above £0.7985 to reconfirm bullish pressure and target the 200-DMA.