The bounce from ahead of the recent 2014 lows and consolidation above the $1.6030 level has now resulted in a close above the 21-DMA which adds support to the bullish case. The $1.6104-49 region now becomes key support with bears needing a close below to regain control. While this region supports bulls now focus on the layers of resistance in the $1.6228-1.6417 region including the 55-DMA and Bollinger band top.
Recent flirtations with the 55-DMA resulted in a bounce back towards the ¥107.60 resistance that has so far confirmed its significance. The pullback from ahead of ¥107.60 confirms bearish dominance with bears looking for a close below the 55-DMA to add weight to the bearish case initially targeting the ¥104.28-68 region. Bulls need 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.
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 ¥137.38-81. 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.