Layers of resistance remain $1.5736-1.6038 with bulls needing a close above $1.5789 to confirm an easing of bearish pressure and above $1.6038 to confirm breaks of the 21-DMA and the falling daily trend line which shifts immediate focus back to the $1.6185-1.6228 region. Key concerns for bears come from O/S daily studies and the Bollinger band base which may limit follow through but while $1.5789 caps initial focus remains on the $1.5425-62 region.
The sharp bounce from ahead of the ¥115.31 support Monday prevented a bearish key day reversal and confirmed the significance of this support. Bears need a close below ¥115.31 to confirm an easing of bullish pressure with a close below ¥113.86 needed to hint at a deeper correction that targets the ¥112.32 Nov 3 low and the 21-DMA just above (¥112.42). Initial support is noted on the hourlies ¥116.05-40 with immediate focus having returned to the ¥117.05-94 region and overall focus remaining on ¥124.16 2007 highs.
The rally to start the new week fell just short of the rising short term daily channel top with the sharp correction from fresh 2014 highs hinting at cracks in the uptrend. In saying that, bears need a close below ¥144.77 to confirm an easing of bullish pressure and below ¥143.34 to end bullish hopes and shift immediate focus back to the ¥140.39-64 region where the 21-DMA is located. While ¥144.77 supports bulls retain the upper hand with immediate focus remaining on the ¥146.53-98 region.
The close above the £0.7864 level has seen bulls extend gains with the 61.8% Fibo having been taken out although the Bollinger band top appears to be limiting follow through. In saying that, overall focus has shifted to the £0.8046-67 region with bears needing a close below the £0.7927 support to ease bullish pressure and shift focus back to the £0.7864-94 region where 21 & 55-DMAs are located. Overall a close below £0.7864 is needed to shift focus back to the key £0.7764-66 support region.