USDJPY consolidates above key support zone; upside pivot lies at 118.36

EURUSD

The Euro came under pressure and dipped to 1.0858, session low, following yesterday’s repeated rejection above 1.09, below which, yesterday’s trading closed. Weakening near-term studies turn focus towards the lower side of near-term range, established between 1.0800 and 1.0983.
The pair also probed below 1.0870, bull-trendline, connecting 1.0713 and 1.0803 lows, level that also marks Fibonacci 61.8% retracement of 1.0803/1.0983 upleg. Daily close below here will generate another bearish signal for extension towards 1.0822, daily 55SMA, which guards pivotal supports at 1.08, range low and 1.0780, daily Ichimoku cloud base.
On the other side, setup of daily MA’s is neutral, while indicators hover around their midlines and 20d Bollinger bands are contracting. This may signal extended sideways mode, while the price holds between established near-term range.
Daily 30SMA, which so far caps today’s trading, offers initial resistance at pivotal 1.09 level and sustained break above is needed to ease downside pressure.

Res: 1.0900; 1.0926; 1.0967; 1.0983
Sup: 1.0858; 1.0822; 1.0800; 1.0780






GBPUSD

Cable extended bounce from fresh lows at 1.4235, where hourly double-bottom was formed, shy of key support and short-term target at 1.4230, Apr 2010 low, with action being boosted by better-than-expected inflation data.
Fresh bullish acceleration was so far capped under pivotal hourly cloud top at 1.4343, break of which would trigger further recovery.
Near-term studies are gaining positive tone and daily technical are oversold, however, no reversal signal has been generated so far that indicates limited upside for now.
Above hourly cloud top, next barriers lay at 1.4402, Fibonacci 23.6% of 1.4943/1.4234 downleg and falling daily 10SMA at 1.4437, which marks next pivot.
Otherwise, fresh downside pressure could be expected on renewed weakness below pivotal 1.4300 support, hourly cloud base / Fibonacci 38.2% of 1.4235/1.4338 upleg.
Recovery rally is seen as positioning for final attack at key 1.4230 support, below which, the way will be open towards psychological 1.4000 support and key longer-term support at 1.3501, low of 2009, which will come in focus.

Res: 1.4343; 1.4350; 1.4402; 1.4437
Sup: 1.4300; 1.4275; 1.4230; 1.4163








USDJPY

The pair extends bounce from last Friday’s low at 116.49, probing above psychological 118 barrier, on the second-day rally. Near-term studies are gaining bullish momentum, for further recovery, which requires sustained break above 118.07, Fibonacci 38.2% of 120.64/116.49 downleg and 118.36, 13 Jan high and top of near-term congestion.
Lift above 118.36, will generate another bullish signal for extended recovery, as daily RSI emerged out of oversold territory.
Extended recovery would open next pivotal barrier at 119.05, Fibonacci 61.8% retracement, reinforced by falling 20SMA.
However, overall structure remains bearish and corrective rallies are expected to precede final attack at key med-term supports at 116.13/115.56, lows of Aug 2015 and Dec 2014, which mark floor of multi-month congestion.

Res: 118.26; 118.36; 119.05; 119.66
Sup: 117.21; 117.00; 116.49; 116.13







AUDUSD

Aussie extends recover rally today and breaks above initial hourly cloud barrier, spanned between 0.6887 and 0.6912. Fresh bulls approach falling daily 10SMA, next barrier, which lies at 0.6963 and guards psychological 0.7000 barrier, also, 4-hor Ichimoku cloud base.
Near-term studies are gaining traction and along with daily RSI / slow Stochastic, which reversed from oversold territory, support further recovery. Overall picture is bearish and favors resumption of larger downtrend, as the pair already broke below key support at 0.6906 and current rallies are seen as positioning for fresh leg lower.
Expect extended rallies above 0.7000 barrier to be capped under falling daily 20SMA at 0.7100.

Res: 0.6962; 0.7000; 0.7046; 0.7100
Sup: 0.6925; 0.6912; 0.6886; 0.6853