The $1.3644-69 resistance region remains key this week with bulls needing a close above to confirm an easing of bearish pressure and see immediate focus shift back to the 21 & 100-DMA’s. Bulls will take some comfort in the recent consolidation above May monthly lows when combined with O/S daily studies, but the $1.3644-69 region remains key. While it caps bears target a break lower that targets the 2014 lows at $1.3477 from Feb 3.
RES 4: $1.3737 100-DMA
RES 3: $1.3716 21-DMA
RES 2: $1.3669 High May 27
RES 1: $1.3644 200-DMA
LPRICE: $1.3625
SUP 1: $1.3620 Hourly support June 2
SUP 2: $1.3586 Low May 29
SUP 3: $1.3563 Low Feb 12
SUP 4: $1.3477 2014 low Feb 3
The $1.6777-1.6818 resistance region remains key to start the new week with bulls needing a close above to confirm an easing of bearish pressure. While this region caps bears will continue to target retests of the 100-DMA. A close below the 100-DMA has not been seen since Q3 2013 with a close below expected to add significant weight to the bearish case. Overall a close above the 21-DMA is needed to hint at a return to 2014 highs.
RES 4: $1.6875 High May 14
RES 3: $1.6833 21-DMA
RES 2: $1.6818 Hourly resistance May 28
RES 1: $1.6777 High May 30
LPRICE: $1.6737
SUP 1: $1.6693 Low May 29
SUP 2: $1.6668 100-DMA
SUP 3: $1.6659 Low Apr 15
SUP 4: $1.6555 Monthly low Apr 4
USD/JPY opened bid above the 21-DMA with immediate focus shifting to layers of resistance Y102.20-38 which include key DMA’s and the Ichimoku cloud base. Initial support is now noted on the hourly time frame at the previous Y101.89 resistance level with bears needing a close below to relieve the current bullish pressure. Overall a close below the 200-DMA remains needed to confirm the bearish case while above Y102.38 confirms the bullish case.
RES 4: Y103.02 High May 2
RES 3: Y102.72 Ichimoku cloud top
RES 2: Y102.38 100-DMA, Ichimoku cloud base
RES 1: Y102.20 55-DMA
LPRICE: Y102.00
SUP 1: Y101.89 Previous hourly resistance now support
SUP 2: Y101.42 200-DMA
SUP 3: Y101.31 21 day lower Bollinger band
SUP 4: Y100.75 2014 low Feb 4
EUR/JPY managed a couple of dips below the 200-DMA last week but failed to close below despite trading at fresh 3 month lows. Immediate focus has shifted back to layers of resistance in the Y139.12-62 region where last week’s high and the 21-DMA are located. Bulls need a close above this region to confirm an easing of bearish pressure and see focus shift to the Y140.64-94 region. Bears continue to target the 200-DMA while the Y139.12-62 region caps.
RES 4: Y140.27 High May 14
RES 3: Y139.62 21-DMA
RES 2: Y139.36 High May 27
RES 1: Y139.12 Hourly resistance May 27
LPRICE: Y138.95
SUP 1: Y138.40 200-DMA
SUP 2: Y137.97 Low May 29
SUP 3: Y137.53 21 day lower Bollinger band
SUP 4: Y136.23 2014 low Feb 4
The 21-DMA stalled the move higher last week confirming its significance. Bears still need to see a close back below Gbp0.8119 to end the correction from 2014 lows and see fresh 2014 lows targeted. While Gbp0.8119 supports bulls favour a break higher that targets layers of resistance in the Gbp0.8223-57 region. Daily studies are correcting from O/S levels and are supportive of the bullish case
RES 4: Gbp0.8223 55-DMA
RES 3: Gbp0.8191 Low Feb 28 now resistance
RES 2: Gbp0.8159 High May 19
RES 1: Gbp0.8148 21-DMA
LPRICE: Gbp0.8141
SUP 1: Gbp0.8119 Alternating daily support/resistance
SUP 2: Gbp0.8083 2014 Low May 22
SUP 3: Gbp0.8035 Low Dec 10 2012
SUP 4: Gbp0.8005 Low Nov 21 2012
