Bulls took a little comfort in the bounce from fresh 2014 lows although it failed to produce a bullish key day reversal. Layers of resistance remain with bulls needing a close above $1.5789 to confirm an easing of bearish pressure and above $1.5945 needed to confirm breaks of the 21-DMA and the falling daily trend line which shifts 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 is limiting follow through but while $1.5789 caps focus remains on $1.5425-62.
The rally continues for dollar-yen with immediate focus having shifted to the ¥119.82-120.44 region and overall focus to the ¥122.60-124.16 region where the 2007 high is located. Layers of support continue to accumulate with bears needing a close below ¥117.36 to ease bullish pressure and below ¥116.33 to shift focus back to the ¥115.31 support. Key support remains in the ¥112.08-113.86 region with a close below needed to end bullish hopes and target the ¥105.19 Oct monthly low.
Fresh 2014 and 6 year highs now see immediate focus having shifted to the ¥149.55-150.00 region where the Bollinger band top is located with overall focus now on the ¥153.51-157.00 region. Layers of support continue to accumulate with bears now needing a close below ¥147.98 to ease bullish pressure and below ¥146.35 to hint at a deeper correction that targets the ¥142.09-143.35 region where the 21-DMA is located.
Cracks are appearing in the uptrend as the EUR/GBP looks to be hesitating ahead of the key £0.8046-67 resistance region with the 200-DMA noted at £0.8053. A close above the 200-DMA has not been seen since Oct 2013 and even then it was relatively brief. Layers of support have accumulated with bears now needing a close below £0.7984 to ease bullish pressure and below the 100-DMA to hint at a move back to the £0.7764-66 region.