The sell-off in early Asian trading took out the 2010 low on the way to the lowest level in almost 6 years with bearish focus now having shifted to tests of the $1.1780-1.1827 region. Key concerns for bears are seen coming from O/S daily and weekly studies and the daily and weekly Bollinger band bases which may limit follow through. Layers of resistance remain with a close above $1.2107 to ease bearish pressure.
RES 4: $1.2107 High Jan 2
RES 3: $1.2070 Hourly resistance Jan 2
RES 2: $1.2033 Alternating hourly support/resistance
RES 1: $1.2000 Low Jan 2 now resistance
LPRICE: $1.1936
SUP 1: $1.1883 Weekly Bollinger band base
SUP 2: $1.1866 2015 Low Jan 5
SUP 3: $1.1827 Monthly Low Feb 27 2006
SUP 4: $1.1780 Low Dec 30 2005
Last weeks failed attempts to take out the 21-DMA resulted in a sharp sell-off that continued in Asian trading to start the new week. The sell-off has dipped below the falling daily channel base with focus now having shifted to $1.5104 Aug 2013 monthly low. Layers of resistance have accumulated with bears now needing a close above $1.5486 to ease the current bearish focus. Key concerns for bears come from O/S studies and the Bollinger band bases.
RES 4: $1.5540 Hourly support Jan 2 now resistance
RES 3: $1.5486 Previous daily support now resistance
RES 2: $1.5364 Hourly resistance Jan 2
RES 1: $1.5335 Hourly resistance Jan 5
LPRICE: $1.5281
SUP 1: $1.5186 Weekly Bollinger band base
SUP 2: $1.5167 2015 Low Jan 5
SUP 3: $1.5104 Monthly Low Aug 2 2013
SUP 4: $1.5031 Low July 15 2013
Recent tests of the 21-DMA failed to produce a close below with the bounce having ended bearish hopes and shifted immediate focus back to Y120.82-00. Bulls look for a close above this region to reconfirm a bullish bias with immediate focus shifting back to 2014 highs and overall focus to the Y124.16 2007 high. Bears need a close below Y118.26 to confirm a break of the channel base, ending bullish hopes and initially targeting Y115.57-116.61.
RES 4: Y121.92 Bollinger band top
RES 3: Y121.85 2014 High Dec 8
RES 2: Y121.00 High Dec 9
RES 1: Y120.82 High Dec 24
LPRICE: Y120.46
SUP 1: Y119.48 21-DMA
SUP 2: Y119.24 Low Dec 31
SUP 3: Y118.85 Low Dec 30
SUP 4: Y118.26 Low Dec 18
The sell-off continued for EUR/JPY to start the new week with focus having shifted to layers of support in the ¥140.35-142.57 region including key DMAs, Fibo retracements, the cloud base and key support levels. Layers of resistance have accumulated with bears now needing a close above ¥145.60 to confirm an easing of bearish pressure and shift immediate focus back to the ¥146.35-147.25 region where the falling daily channel top and 21-DMA are located.
RES 4: ¥145.60 High Dec 31
RES 3: ¥145.32 High Jan 2
RES 2: ¥144.66 Low Jan 1 now resistance
RES 1: ¥144.11 Hourly resistance Jan 2
LPRICE: ¥143.74
SUP 1: ¥142.57 Falling daily channel base
SUP 2: ¥142.18 Ichimoku cloud base
SUP 3: ¥141.97 50.0% Fibonacci retracement 134.14-149.80
SUP 4: ¥141.51 100-DMA
The aggressive bounce from fresh 2015 and multi-year lows Friday eased the immediate bearish pressure a little but confirmed the significance of the £0.7870-0.7923 resistance region. Bulls need a close above £0.7870 to hint at further topside whereas a close above £0.7923 confirms breaks of the 55 & 100-DMAs, shifting focus back to the 200-DMA and falling daily trend line £0.7984-88. While £0.7870 caps bears target £0.7695.
RES 4: £0.7954 High Dec 17
RES 3: £0.7923 High Dec 18
RES 2: £0.7870 High Dec 23
RES 1: £0.7857 21-DMA
LPRICE: £0.7813
SUP 1: £0.7794 Hourly support Jan 5
SUP 2: £0.7772 Hourly resistance Jan 1 now support
SUP 3: £0.7745 2015 Low Jan 2
SUP 4: £0.7695 Monthly Low Oct 20 2008