USDJPY consolidates after hitting fresh lows near 118 pivot; focus remains at the downside

EURUSD

The Euro maintains negative sentiment and hit fresh low at 1.0709 yesterday. Sharp fall left long red daily candle, broke and closed below pivotal 1.08 support, former higher base and daily Ichimoku cloud base and also cracked next support at 1.0725, Fibonacci 61.8% of 1.0519/1.1058 upleg.
Today’s price action holds in a narrow range consolidation, with daily candle, being so far shaped in long-legged Doji candle, confirming indecision.
Technicals are negative on all timeframes and favor resumption the downtrend from 1.0990 lower top, as Failure Swing pattern has formed on a daily chart, signaling further weakness.
Close below 1.0725, Fibonacci 61.8% support, is needed to confirm bearish resumption, as there are no obstacles on the towards next target at 1.0646, Fibonacci 76.4% retracement.
However, prolonged consolidation and extended upticks, cannot be ruled out, as oversold slow Stochastic indicates such action.
Expect rallies on possible bullish signal to be ideally capped at 1.0820/30 zone, descending hourly Ichimoku cloud base / daily 30SMA.
Return above psychological 1.09 barrier, reinforced by daily 20SMA, will bring bulls back to play.

Res: 1.0757; 1.0800; 1.0820; 1.0837
Sup: 1.0725; 1.0709; 1.0646; 1.0600






GBPUSD

Cable continues to trend lower and eventually cracked psychological 1.4600 support, on today’s extension of six-day downtrend from 1.4943, 24 Dec lower top. Series of long red daily candles confirm strong bearish stance, as the pair heads towards key support and target at 1.4563, low of 2015, posted in Apr.
Full retracement of 1.4563/1.5928 rally will confirm an end of multi-month bullish phase and trigger fresh extension of the downleg from 1.5928, 18 June peak and high of 2015.
Firm bearish setup of technicals on all timeframes supports final push to 1.4563 target. However, daily slow Stochastic and RSI are oversold and indicate possible hesitation on approach to key med-term support.
Falling daily 10SMA that maintains the downtrend since mid-Dec, offers good resistance at 1.4786, while only break above 1.4913/43, falling daily 20SMA / 24 Dec lower top, will neutralize near-term bears for stronger correction.
Res: 1.4695; 1.4723; 1.4783; 1.4842
Sup: 1.4597; 1.4564; 1.4500; 1.4450






USDJPY

Fresh weakness today came ticks away from 118 target and higher base, on the fourth-day of steep descend from 120.64 lower top.
Technical studies hold firm bearish tone and favor break through 118 pivot, to expose key short-term support and breakpoint at 115.60 zone. Triple Death Cross of 10/200; 20/200 and 30/200SMA’s, maintains bearish stance.
Near-term consolidation above 118 handle could be anticipated, before bears resume.
On the upside, falling daily 10SMA, reinforces psychological 120 barrier and guards daily Ichimoku cloud base, reinforced by falling daily 20SMA at 120.89.

Res: 118.80; 119.23; 119.68; 120.00
Sup: 118.23; 118.00; 117.50; 116.86







AUDUSD

The pair eventually broke below pivotal 0.7095 support, higher low of 17 Dec, on today’s fresh bearish acceleration, inspired by risk-aversion. Break lower confirms Failure Swing pattern on the daily chart and signals further downside action towards next key support at 0.7014, 10 Nov low.
Daily indicators moved into negative territory, with bearish setup of MA’s, giving strong support to short-term bears.
Oversold daily slow Stochastic indicates possible consolidation of steep four-day descend from 0.7325 lower top of 31 Dec 2015.
Descending 100SMA capped today’s trading at 0.7167, along with top of thin daily Ichimoku cloud and offers good resistance. Upside breakpoint lies at 0.7220, Fibonacci 61.8% of 0.7325/0.7054 descend, reinforced by daily 20SMA.


Res: 0.7105; 0.7130; 0.7170; 0.7212
Sup: 0.7054; 0.7014; 0.6936; 0.6906