The close above the 21-DMA on Thursday saw the GBP/USD spike above the falling daily trend line off 2014 highs ($1.6828) before managing a relatively bearish close. In saying that, bears need a close below Friday’s low to retain control and see immediate focus shift to the 100-DMA at $1.6687. Bulls now look for a close above Friday’s high to confirm an end to bearish hopes and see the key $1.6919 resistance level tested.
The dip Friday saw the pair test the Y101.89-23 support region with the USD/JPY reversing its move below the 55 & 100-DMA’s to manage a relatively bullish close. The pair largely consolidated above the 55 & 100-DMA’s last week and bears now need to see a close below the Y101.89 support to end bullish hopes and see the focus shift back to the 200-DMA. While the Y101.89 support remains in play bulls will target the Y103.02 May 2 high and then the 2014 highs above.
EUR/JPY managed another dip below the 21-DMA to end last week before recovering lost ground to manage a relatively bullish close. The 21-DMA remains key support this week with bears needing a close below the ease the bullish pressure and see focus shift back to the Y137.97 May 29 low and closes below the 200-DMA. Layers of resistance remain Y140.27-99 with bulls needing a close above Y140.99 to shift immediate focus to May monthly highs.
EUR/GBP traded at fresh 2014 and 18 month lows last week before recovering lost ground but only to remain capped by the 21-DMA to end the week. Bulls need a close above the 21-DMA to hint at an easing of bearish pressure and a close above Gbp0.8159 to confirm an see immediate focus shift to the Gbp0.8192-0.0.8257 region. Overall while Gbp0.8159 caps bears will target fresh 2014 lows with potential for sub Gbp0.8000 levels existing.