Despite a plethora of signals speaking in favour of a rally, namely confirmation of 104.92/81 and bullish technical studies, USD/JPY returned back to the up-trend.
Just like in many other U.S. Dollar crosses, the buck noticeably outperformed its counterpart here as well.
Previous day was marked with a precipitous drop—the exchange rate fell more than 100 pips.
Pair dipped till 81.5 cents, peaking slightly above 0.8225, but soon recovered and is hovering slightly above 82 cent mark.
Pair seemed to have stabilized after a brutal sell off before the new years eve, but received additional bearish impetus from the weekly PP today and has dipped below the 1.06 mark.
Quite a few times in the past weeks the pair tried to push through 2013 low, but unsuccessfully.
Pairs bulls took a step back after pushing it to the highest level in 2013 a few days back which gave the room to the bears to sell it off.
USD/CHF returned back to the February 2012 low after a sharp decline, but appears to be unable to continue the up-move beyond the resistance at 0.8945/20.
USD/JPY has just confirmed 104.92/81 as the new support and is therefore poised for further gains.
Although for a brief moment it appeared that GBP/USD is going to take a break before resuming the recovery, right now it is already probing 1.6596/87.
Taking into account that the key resistance, namely the one formed by the October high and the multi-year down-trend at 1.3832/13, continues to stand its ground, the Euro is still more likely to depreciate from here than outperform the U.S. Dollar.
Even though a test of the support at 0.8125/22 prompted strong buying, the surge, as expected, was halted by a cluster of resistances at 0.8218/0.8197.
After yesterday's attempt of USD/CAD to hop on to 1.0712/1.0693, the pair again fell to the up-trend line.
While yesterday we still considered a breach of the August low as still a viable scenario, today the event appears to be much less probable.
For the second trading day the currency pair remains contained by the formidable resistance at 145.18/144.97 from above and a slightly weaker support at 144.19 from below.
USD/CHF remains on the defensive—it has just closed beneath the monthly S2 and therefore may decline even further.
"I think the yen still has quite a bit of weakness still to go."- Richard Harris, Port Shelter Investment Management (based on CNBC)Pair's OutlookProving to be unable to sustain at the moment a rally for straight six trading days USD/JPY underwent a bearish correction yesterday, which already appears to have ended at 104.92/61. Consequently, the price is now ready to
GBP/USD seems to have lost its upward momentum following a test of the monthly R1.
EUR/USD launched yet another attack on the major down-trend line yesterday, but still stays contained by it and the resistance at 1.3831/28.
A touch of 0.8122/21 today has led to a surge that has already reached 0.8220/0.8197.
It seems that yet another try of USD/CAD to rise beyond 1.0701/1.0693 did not turn out to be successful—the price is moving away from 2010 highs en route to the up-trend line.
After a shallow rally due a test of the August low AUD/USD has once again returned to 0.8845.
The currency pair continues to struggle at 145.18/144.75 that consists of the long-term up-trend and the monthly R2 level, making it quite a difficult hurdle to surpass.
Although USD/CHF plunged more than 150 pips on Dec 27, it recovered most of the losses the same day and managed to settle above the monthly S2.