EURJPY
The pair trades in near-term corrective phase, following last Thursday’s steep fall, which was so far contained at135.80, just ahead of key support at 135.71. Bounce to psychological 137 barrier, put immediate downside risk on hold, as the rally retraced nearly 50% of 138.27/135.80 descend and near-term technicals establishing in bullish mode. However, clear break above 137 barrier, where the rally was so far capped and price action consolidate, is required to confirm bullish scenario and probe the upper levels of short-term 135.71/138.27 range. Otherwise, negative daily studies would keep downside at risk, in case of failure to clear 137 hurdle.
Res: 137.00; 137.32; 137.67; 138.00
Sup: 136.60; 136.30; 136.00; 135.80
GBPJPY
Sterling has regained some ground against yen, following week’s opening with gap lower and fresh bearish extension, which posted new low at 169.32. Subsequent bounce cracked already broken 200SMA at 171.30 and nearly filled Monday’s gap on extension to 171.50 so far, improving hourly structure for possible fresh strength. However, caution is required as 4-hour structure is still weak and daily studies negative, with sustained break above Friday’s intraday high at 171.58 and 50% retracement of 173.92/169.32 downleg / daily Kijun-sen line at 171.62, required to signal further recovery and near-term bottom at 169.32. Fresh bulls are expected to signal reversal pattern formation and open Fibonacci 61.8% barrier at 172.16, ahead of previous highs at 172.56/66. Otherwise, risk of upside rejection and fresh attempt lower, would remain in play and would increase in case of loss of initial support at 170.50 zone.
Res: 171.50; 171.62; 172.16; 172.56
Sup: 170.50; 170.00; 169.69; 169.32
EURGBP
The pair holds positive near-term tone, as price action hovers around 0.8000 handle, on consolidation phase under fresh high at 0.8035. Monday’s low at 0.7976 so far holds the downside attempts, which keeps Monday’s gap intact. Also, full retracement of 0.8035/0.7890 descend, suggests further gains, in case of sustained break above daily Ichimoku cloud top at 0.815 and key 0.8035 barrier, which is required to confirm double-bottom formation and spark further retracement of Mar/July 0.8397/0.7871 downleg. However, yesterday’s Long-Legged Doji warns of prolonged consolidation, with 0.7976 higher base, required to hold. Also, formation of bullish cross of daily Tenkan-sen / Kijun-sen lines at 0.7962, underpins the action.
Res: 0.8015; 0.8035; 0.8072; 0.8100
Sup: 0.7976; 0.7955; 0.7928; 0.7900
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