The $1.6185 resistance level confirmed its significance Tuesday with it capping the bounce from the 21-DMA. Bulls now look for a close above $1.6185 to confirm bullish pressure and shift immediate focus to the $1.6287-1.6343 region where the 55-DMA is located. Bears now need a close back below the 21-DMA to ease the renewed bullish pressure and shift overall focus back to 2014 lows.
After having broken above the ¥107.60 level last week USD/JPY has so far found support on dips back towards this level and is now starting to make gains above the 21-DMA (¥107.75). Bears need a close below ¥107.60 to confirm a break back below the 21-DMA and ease bullish pressure whereas below ¥106.79 is needed to target a retest of the ¥105.19 low. While ¥107.60 supports bulls look for a close above ¥108.74 to confirm bullish pressure and overall focus on the ¥110.09-68 region.
Bulls are capitalizing on the recent consolidation above the 21-DMA with Tuesday’s close above both the 55 & 100-DMAs adding support to the bullish case and seeing pressure currently on the key ¥137.94 resistance. Bulls look for a close above ¥137.94 to shift immediate focus to the ¥139.07-16 region where the 200-DMA is located. Bears now need a close below the 55-DMA to ease bullish pressure and below the 21-DMA to shift focus back to the key ¥134.10 support.
EUR/GBP continues to trade sideways in a narrow £0.7862-0.7901 range with bears continuing to look for a close below £0.7850 to confirm a break lower whereas a close above £0.7951 remains needed to signal a move higher that initially targets the £0.8067-83 region where the 200-DMA is located. Daily studies are approaching O/S levels which add support to a move higher.