USD/JPY: Bearish consolidation

Peter A Rosenstreich Swissquote Bank Ltd

EUR/USD

Decreasing.

EUR/USD lies below 1.21, breaking hourly support at 1.2112 (12/01/2018). The pair is heading along the 1.2085 range. The pair is currently trading at mid-January 2018 low. Hourly support and resistance are now given at 1.2028 (11/01/2018 low) and 1.2323 (17/01/2018 high). The technical structure suggests short-term downward trading moves.
In the longer term, the momentum is turning largely positive. We favor a continued bullish bias. Key resistance is holding at 1.2886 (15/10/2014 high) while strong support lies at 1.1554 (08/11/2017 low).

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GBP/USD

Slight decrease.

GBP/USD is trading lower, breaking hourly support at 1.3905 (23/02/2018) and heading along the 1.3895 range. The pair is currently trading at mid-March low. Hourly support and resistance are given at 1.3836 (06/02/2018 low) and 1.4097 (29/01/2018 high). The technical structure suggests short-term decrease.
The long-term technical pattern is reversing. The Brexit vote had paved the way for further decline but the pair is moving to 2016 highs. Long-term support and resistance are given at 1.1841 (07/10/2017 low) and 1.5018 (24/06/2016 high).

USD/JPY

Bearish consolidation.

USD/JPY bullish pattern pauses, currently trading at 109.29 and heading along the 109.15 range. The bearish pattern started in January 2018 is weakening. Hourly support and resistance are given at 106.65 (22/02/2018 low) and 110.26 (05/02/2018 high). The short-term technical structure suggests short-term downward moves.
We favor a long-term bearish bias. Support remains at 101.20 (09/11/2016 low). A gradual rise toward the major resistance at 125.86 (05/06/2015 high) seems unlikely. Expected to decline further support at 101.20 (09/11/2016 low). The pair trades below its 200 DMA.

Author

Peter A Rosenstreich

Swissquote Bank Ltd

Peter Rosenstreich is Swissquote Bank’s Head of Market Strategy and manages the global strategy desk; he has held various positions in several banking institutions in the United States, Europe & Asia.

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