USDJPY - daily cloud top expected to contain correction

EURUSD

The Euro establishes in negative territory, following last Thu/Fri strong acceleration of pullback from 1.1494, double-rejection tops. This shaped last week’s trading in long red candle that marks the strongest weekly losses since May 2015.
The pair cracked psychological 1.10 support on Friday’s acceleration lower, after 200SMA capped corrective attempts at 1.1120.
Oversold 4-hour studies suggest correction, before renewed attempt lower, for clear break below 1.1000 support and bearish resumption towards, next targets at 1.0955, Fibonacci 138.2% expansion of the downleg from 1.1494 and 1.0900, round-figure support, in extension.
Initial barriers lay at 1.1070/1.1100, with upside attempts expected to remain capped under strong 1.1120/30 resistance zone, 200SMA / broken bear-trendline, connecting 1.1712 and 1.1458 tops / Fibonacci 38.2% of 1.1349/1.0995 downleg.

Res: 1.1085; 1.1103; 1.1130; 1.173
Sup: 1.0995; 1.0955; 1.0900; 1.0862







GBPUSD

Cable touched 1.53 support, the mid-point of 1.5105/1.5506 rally / rising daily 20SMA, on Friday’s bearish acceleration that came after the pair lost key support, daily Ichimoku cloud base at 1.5417.
Fresh bears that also dipped below Fibonacci 61.8% of 1.5198/1.5506 upleg, confirmed lower platform at 1.5506 and brought bears on near-term studies, fully in play.
Also, setup of daily MA’s is turning into bearish mode, with indicators heading south, but so far holding above the midlines.
Corrective actions were so far capped by daily Kijun-sen line, with extended rallies expected to hold below 1.5415, hourly lower platform.

Res: 1.5351; 1.5380; 1.5415; 1.5428
Sup: 1.5304; 1.5272; 1.5200; 1.5137








USDJPY

Last week’s strong rise took out 121.31, former top of consolidation range, but stalled on approach to also strong barriers at 121.64/78, 31 Aug lower top / Fibonacci 61.8% of Aug’s 125.26/116.13 fall.
Series of bullish daily closings and strong bullish weekly close, keep upside in focus, for eventual clearance of 121.64/78 breakpoint zone. Break here is needed to confirm return of daily bulls to play and turn short-term outlook into firm bullish mode.
Meantime, corrective easing so far cracked initial support, 200SMA, at 120.95. Daily close above the top of daily Ichimoku cloud, is needed to keep near-term bulls intact, with extended dips, expected to find support at 120.33, bull-trendline, drawn off 118.57 higher low.
Alternative, close below daily cloud base at 120.21, would soften near-term tone and signal deeper pullback from fresh peak at 121.46.

Res: 121.31; 121.46; 121.64; 121.78
Sup: 120.70; 120.33; 120.21; 119.76





AUDUSD

Aussie recovers losses of last Friday’s bearish acceleration that came after upside rejection at 0.7294 and left double long-legged daily Dojis. Near-term price action still lacks direction, being entrenched between 0.7180/0.7294 congestion.
Today’s fresh rally that cracked falling daily 10SMA at 0.7261, shifts focus towards the upside, as near-term studies are gaining traction.
The notion is supported by bullishly-aligned daily studies and north-heading daily slow Stochastic, which emerged from oversold zone.
However, sustained break above psychological 0.73 barrier, also marking Fibonacci 61.8% of 0.7380/0.7180 pullback, is required to confirm scenario.
On the downside, daily Ichimoku cloud top, offers good support and sustained break below here would soften near-term tone and risk further extension of pullback from 0.7380 peak.

Res: 0.7294; 0.7305; 0.7361; 0.7380
Sup: 0.7243; 0.7200; 0.7180; 0.7157