GBP/USD jumps higher to meet 1.2000 [Video]

EUR/JPY pauses bullish course, focus still on the upside

EURJPY paused its short-term bullish sequence near a two-week high of 140.78 and below the 20-day simple moving average (SMA) on Monday as the broken support trendline from March came to block the way higher.

The technical signals reflect a weak bullish bias at the moment. The RSI has barely risen above its 50 neutral mark, the MACD is trying to deviate above its red signal line in the negative region, while the Stochastics are entering the overbought area above 80.

Hence, given the above encouraging signs, the pair is expected to keep pressuring the 140.00 – 141.00 region in the short term. A successful penetration of that bar could initially stall around the 142.00 psychological mark before stretching towards the crucial ceiling of 144.24. Beyond that, the rally could face another acceleration towards the constraining zone of 147.20 – 148.00, last examined during the end of 2014.

In the event upside forces fade immediately, with the price sliding below the 139.55 – 139.20 area, which encapsulates the 23.6% Fibonacci retracement of the 124.38 – 144.24 upleg, the bears may try to reach July's base of 137.70 - 136.65. Failure to bounce here would raise fears of a down-trending market, likely producing another sharp downfall towards the 50% Fibonacci of 134.30 and the 200-day SMA at 133.35.

Summarizing, the short-term risk for EURJPY is softly tilted to the upside, with buyers waiting for a clear spike above the 140.00 – 141.00 zone to drive the market higher. 

GBP/USD jumps higher to meet 1.2000

GBPUSD is showing signs of being positive in the short run, after gaining ground on Thursday and breaking over its 28-month low of 1.1760. The technical indicators are pointing upwards as the RSI is on the rise, but it has not yet come close to the neutral threshold of 50, and the MACD is crossing its trigger line to the upside while still being in the negative region.

The 20-day simple moving average (SMA), which is located at 1.2040, and the blue Kijun-sen line are expected to present an immediate barrier to any additional price advances. This is also close to the descending trend line of 1.2200, which means that this could prove to be a challenging obstacle for the pair to overcome. In the event that a successful breakout occurs above this region, additional resistance is likely to be found in the area of 1.2340-1.2455.

On the other hand, if the momentum weakens, and the pair were to start moving in the opposite direction again, the multi-month low at 1.1760 would be the first support level. If prices break below this level, they may move closer to the barrier at 1.1410, which was registered in March 2020.

As long as prices are located below the declining trend line, the bearish scenario will most likely continue to apply to the more medium-term picture, where it has not changed at all and where it is likely to continue to hold.