The currency pair did not confirm a breach of the 200-day SMA and quickly returned back above 0.8939, meaning the bullish outlook is not invalidated.
USD/JPY is currently retreating after breaking out of the triangle to the upside.
Although the market seems to be respecting the resistance at 1.6813/1.6783 (55-day SMA, monthly PP and up-trend), the supply is not enough to overpower the demand and send the Sterling south.
As expected, EUR/USD did not continue its recovery—instead the pair returned to the most recent lows after making an attempt to approach the 200-day SMA at 1.37.
After breaking out from the downtrend last week the Kiwi is trying to consolidate above the major level at 0.85; however, unsuccessfully.
Since last Monday's appreciation above the monthly PP at 1.0888 the pair has formed a sideways trend around the 55-day SMA and weekly PP at 1.0932/13.
The Aussie remains bullish as it has appreciated for five consecutive days after falling almost 100 pips lower on last Monday.
After last week's appreciation the Euro dropped more than 50 pips today as the weekly and monthly PPs at 139.61/69 were broken.
USD/CHF did not carry on descending after a breach of the 200-day SMA, making a bounce back above 0.8939 a likely event.
Although the technical indicators are finally in favour of a recovery, the bullish momentum is struggling to gain traction ahead of the resistance at 103.00/102.91.
For now the up-trend support line, which was breached two weeks ago, is holding the bulls back, thereby implying a negative bias towards the Pound.
Despite the increased volatility during the second part of the past week, none of the major levels have been breached.
This week the Euro has rebounded from the major level at 138 that was reached at the end of the previous week.
After the decline on Monday the Aussie has managed to recover and even to gain against the greenback. At the moment the pair is trading above the 0.93 level and is attacking the weekly R1 at 0.9347.
The greenback started the week with breaking the monthly PP at 1.0888, since then it is trading between the weekly R2 (1.0915) and R3 (1.0944).
The pair's value has changed just slightly trough this week; although, the Kiwi spiked down below the weekly S1 at 0.8434.
Despite formidability of the 200-day SMA, the bears pulled the price beneath 0.8945/28 yesterday, even though it was expected to act as a floor.
The greenback weakened ahead of the resistance at 102.91, but this is seen only as a temporary bearish correction before another bullish wave.
Similarly to the Euro, the Sterling also moved north, but the currency is already facing one of the key resistances—13-month down-trend, which is currently reinforced by the monthly PP.
Although at the end of the day instead of forming a red candle the currency pair closed higher, prior to that it managed to reach one of the major targets, namely the 2014 low at 1.35.
The pair started to decline at the beginning of May and since then the pair has lost almost 400 pips.
The greenback breached the weekly R3 at 1.0944 for a second straight day; however, it was not able to sustain its strength and slipped below this resistance level.
The Aussie has breached the major level and 55-day SMA at 0.9300/08 as it continues to trade not that far from the higher levels this year.
Today we have seen a rather significant weakness in Euro; therefore, the pair dropped below the major level at 139. If the weekly PP at 138.73 holds the Euro from falling lower then the currency could bounce back above the 139 level.