USDJPY sees near-term risk for stronger correction

EURUSD

The Euro is at the back foot on near-term, following extended pullback from last week’s fresh high at 1.1374.
Friday’s close in red generated initial bearish signal and weakened near-term studies, with overnight’s acceleration lower and break below psychological 1.1200 support, turning focus at strong 1.1160/20 support zone, 09/10 Feb higher base / daily Tenkan-sen / Fibonacci 38.2% of 1.0709/1.1374 rally.
Extended dips should ideally find support here, as daily technicals are bullish, but reversed Slow Stochastic shows further room at the downside.
Former high of 15 Dec and 200SMA at 1.1058/55 zone, mark next strong support and break lower will sideline larger bulls and trigger stronger correction of 1.0709/1.1374 rally.

Res: 1.1248; 1.1273; 1.1323; 1.1374
Sup: 1.1160; 1.1120; 1.1085; 1.1055









GBPUSD

Cable is trading in directionless near-term mode, as Asian / early Europe trading is shaped in long-legged Doji, offsetting initial bearish signals, generated on Friday’s upside rejection at 1.4568 and subsequent quick pullback.
Dips found footstep at 1.4440, with bounce to 1.45 zone, daily 10SMA, reducing downside pressure, signaled by long upper shadow of Friday’s daily candle.
On the other side, bullish signal, generated by double bull-cross of 10/20 and 10/30SMA’s, still underpins and keeps near-term focus shifted higher.
Extended dips need to hold above 1.4412, daily 30SMA, to keep near-term bulls in play for possible fresh attempts at pivotal 1.4575, congestion tops zone.
Otherwise, stronger downside pressure c towards pivotal support at 1.4380, near-term congestion floor / daily 20SMA, could be expected on break below 1.4412, daily 30SMA.

Res: 1.4533; 1.4575; 1.4612; 1.4665
Sup: 1.4460; 1.4412; 1.4380; 1.4350








USDCAD

The pair is losing traction after recovery stalled on attempts above psychological 1.4000 barrier and subsequent easing resulted on Friday’s close in red.
The price also returned below falling daily 10SMA, break above which was short-lived.
Fresh weakness penetrated again through daily Ichimoku cloud top, which acted as good near-term support, signaling further easing.
Setup of daily 10; 20 and 55SMA’s turned into bearish mode, while indicators hold in the negative territory that suggests further weakness.
Overnight’s probe below 1.38 handle, eye next support at 1.3781, Fibonacci 61.8% of 1.3637/1.4014 correction.
There are no significant supports on the way to key 1.3637 support, low of 04 Feb, also daily Ichimoku cloud base, which could be revisited on fresh acceleration lower.
Only bounce and close above 1.4038, daily 20SMA / Fibonacci 38.2% of 1.4688/1.3637 downleg, would neutralize bears.

Res: 1.3881; 1.3919; 1.3962; 1.4014
Sup : 1.3795, 1.3781; 1.3726; 1.3707








USDJPY

The pair is regaining traction and turns near-term focus higher, on today’s fresh extension of last Friday’s recovery rally off fresh multi-month low at 110.97, which was shaped in long bullish candle.
In addition, long tail of Friday’s daily candle, signaled additional boost, which resulted in today’s fresh bullish extension that cracked psychological 114 barrier, after taking out initial resistance at 113.50, Fibonacci 23.6% of 121.67/110.97 fall.
Daily RSI / Slow Stochastic, reversed from oversold territory, signaling stronger correction of steep 8-day descend.
Recovery now eyes strong resistances at 115.06, Fibonacci 38.2% of 121.67/110.97 and 115.52, falling daily 10SMA, below which correction rally should be ideally capped, ahead of fresh leg lower of larger bears.
Conversely, extended correction could be anticipated on sustained break above daily 10SMA.

Res: 114.20; 115.06; 115.52; 115.95
Sup: 113.25; 112.36; 111.64; 110.97