USDJPY trades in extended consolidation, capped by strong 118 barrier

EURUSD

The pair returned into bear-channel off 1.1058 peak, following yesterday’s false break above 1.0940 platform and upside rejection at 1.0967. Yesterday’s bearish daily candle with long upper shadow, signaled renewed downside pressure.
Channel resistance line, reinforced by daily 20 SMA, caps for now and marks initial resistance at 1.0895.
Daily MA turned again into bearish mode, as yesterday’s easing closed below pivotal daily 30SMA support at 1.0860. Also, daily momentum studies moved into negative territory and slow Stochastic reversed on the border of overbought zone.
Renewed weakness through 1.0847/40, lows of yesterday / today, would look for 1.0800, Friday’s post NFP low.
Lower platform at 1.0940, remains as significant resistance and is expected to ideally cap upticks, while break above yesterday’s spike high at 1.0967, would sideline bearish threats and expose strong barriers at 1.0990/1.1006, lower platform / daily Ichimoku cloud top.

Res: 1.0895; 1.0940; 1.0967; 1.0990
Sup: 1.0840; 1.0800; 1.0770; 1.0710






GBPUSD

Cable resumes broader downtrend, which was briefly paused for yesterday’s narrow consolidation. Fresh acceleration lower, triggered by weak UK data, broke below former 5 ½ year low at 1.4492.
Extended wave C, from 1.4943 lower top, broke below 1.4501, its 100% Fibonacci expansion and could travel to 1.4332, 138.2% expansion. Interim support lies at 1.4400, round-figure support.
Bears are firmly in play and so far ignore oversold conditions of daily chart studies.
Yesterday’s low at 1.4492, is now reverted to initial resistance, followed by consolidation top at 1.4600 and falling daily 10 SMA at 1.4650.

Res: 1.4492; 1.4577; 1.4600; 1.4650
Sup: 1.4450; 1.4400; 1.4332; 1.4228







USDJPY

The pair enters consolidation phase above fresh 4 ½ month low at 116.67, posted yesterday. Subsequent bounce was capped at 118 zone that also limited today’s renewed upside attempts.
This is seen as ideal reversal point, as barrier is reinforced by former low of 15 Oct 2015 at 118.05, and just below Fibonacci 38.2% of 120.64/116.67 downleg.
Setup of daily MA’s remains firmly bearish, however, reversed daily slow Stochastic that emerged from oversold territory, warns of possible recovery extension.
Such scenario would open next barriers at 118.86, falling daily 10SMA and 119.12, Fibonacci 61.8% of 120.64/116.67 downleg.
Otherwise, expect renewed downside pressure on repeated failure at 118 barrier, with pivotal supports at 116.67/13, to come in near-term focus again.


Res: 118.05; 118.19; 118.86; 119.12
Sup: 117.18; 116.67; 116.13; 115.83






AUDUSD

Near-term consolidation above fresh low at 0.6925 is under way, but indecision showed by yesterday’s long-shadowed daily candle, sees limited range of consolidation.
This could be also seen as hesitation ahead of key med-term support at 0.6906, low of 04 Sep 2015, above which, the pair was in multi-month 0.6906/0.7383 congestion.
Overall bears could be further paused for possible stronger bounce, signaled by slow Stochastic reversing in oversold territory.
In case bullish signal is generated, extended correction could be anticipated. Otherwise, fresh bears could be expected on failure to break above psychological 0.7000 barrier, also hourly Ichimoku cloud top and yesterday’s high at 0.7034.

Res: 0.7000; 0.7034; 0.7073; 0.7095
Sup: 0.6978; 0.6938; 0.6925; 0.6906