USDJPY consolidates within daily cloud; 200SMA to cap ahead of fresh weakness

EURUSD

The Euro attempts again at pivotal 200SMA, following yesterday’s repeated rejection here and long-legged daily candle, which confirmed indecision.
Fresh rally penetrated daily Ichimoku cloud base at 1.1000 again, looking for final break above 200SMA at 1.1032 and resumption of short-term recovery, which requires break above daily cloud top, currently at 1.1100.
Near-term studies are back into full bullish mode, with bullishly aligned daily indicators, being supportive for further upside. However, setup of daily MA’s is mixed and weighs on bulls.
Also, daily slow Stochastic is ranging around overbought territory border and could signal fresh pullback, on reversal.
This would keep in play scenario of prolonged congestion, expected on repeated failure at 200SMA.
All eyes are at tomorrow’s Fed’s rate decision.

Res: 1.1058; 1.1100; 1.1122; 1.12014
Sup: 1.1000; 1.0944; 1.0925; 1.0877





GBPUSD

Cable is at the back foot, following yesterday’s strong bearish daily close that came on fresh weakness after upside rejection at 1.5238.
Bearish acceleration was so far contained by rising daily 10SMA and Fibonacci 38.2% of 1.4892/1.5237 upleg at 1.5106.
Also, former low of 10 Dec lies at the same level and marks it as ideal support for near-term correction and reversal point.
Bounce and close above daily 30SMA at 1.5154, is needed to signal recovery.
Otherwise, the downside will remain vulnerable, with violation of 1.51 handle, expected to trigger fresh bearish acceleration towards psychological 1.50 support.

Res: 1.5183; 1.5200; 1.5238; 1.5263
Sup: 1.5120; 1.5106; 1.5065; 1.5024








USDJPY

Bearish tone persists in the near-term trading, as the pair posted fresh low at 120.33 yesterday, but quick recovery prevented further weakness and eventual attack at psychological 120 support.
Yesterday’s trading was choppy and ended in daily candle with long shadows, signaling hesitation.
Near-term action moves within daily Ichimoku cloud, which is spanned between 120.82 and 121.31, with overnight’s trading being shaped in long-legged Doji.
However, overall bearish structure is expected to keep the downside pressured, with return below daily Ichimoku cloud base, to re-focus 120.22 target, Fibonacci 61.8% of 118.05/123.74 upleg / higher base and psychological 120 support, in extension.
At the upside, 200SMA at 121.56, marks pivotal resistance, reinforced by formation of 100/200SMA’s Death-Cross. Sustained break here is needed to neutralize downside risk and open way for stronger recovery.


Res: 121.16; 121.34; 121.56; 122.20
Sup: 120.56; 120.22; 120.00; 119.40







USDCAD

The pair enters consolidation after meeting initial target at 1.3760, Fibonacci 161.8% expansion of the third wave which commenced from 1.3036 and posted marginally higher high at 1.3778, yesterday.
Consolidation was signaled by yesterday’s long-legged daily candle.
Strong bullish tone prevails on daily studies and supports further upside, but reversing daily RSI and slow Stochastic, which are both overbought, suggest extended dips, before fresh strength.
Rising daily 10SMA, currently at 1.3550, is seen as ideal support, however, extended dips towards rising daily 20SMA at 1.3436cannot be ruled out, before bulls re-assert.

Res: 1.3731; 1.3778; 1.3792; 1.3825
Sup: 1.3675; 1.3617; 1.3550; 1.3454