GBP/USD continues to flirt with the 21-DMA ($1.6795) and the falling daily trend line off 2014 highs coming in around $1.6812 today. Bulls need to see a close above the $1.6845 June 6 high to confirm a break of the 21-DMA and falling trend line with immediate focus then shifting to the $1.6881-1.6919 region and overall focus to the 2014 highs. While $1.6845 caps bears will continue to target the $1.6659-1.6693 region with the 100-DMA noted at $1.6693.
The move lower continued with the USD/JPY dipping below the 21-DMA and the Y101.89 support. Initial resistance is now noted on the hourlies at Y102.21 with bulls needing a close above to confirm an easing of bearish pressure whereas a close above Y102.42 confirms a break back above 55 & 100-DMA’s and sees immediate focus shift to the Y102.80 June 4 high. While Y102.42 caps bears continue to look for a close below the 21-DMA and target the Y101.45-57 region.
Following on from Tuesday’s close below the 200-DMA the EUR/JPY continued lower Wednesday trading at fresh 4 month lows as it consolidates below the 200-DMA. Bulls need to see a close above Y139.46 to confirm a break back above both the 21 & 200-DMA’s with immediate focus then shifting to the Y140.27-94 resistance region. For now bears retain control with overall focus on fresh 2014 lows. Daily studies are largely neutral and not currently an issue.
Fresh 2014 and 18 month lows continued for the EUR/GBP on Wednesday as bears continue to target sub Gbp0.8000 levels and the Nov 2012 monthly low at Gbp0.7960 to be more precise. Initial resistance remain on the hourlies at Gbp0.8086 with bulls needing a close above to ease bearish pressure a little. A close above the 21-DMA hints at higher levels but bulls need a close above the key Gbp0.8159 level to shift overall focus to the Gbp0.8192-0.8257 region.