Although the very first attempt of USD/JPY to pierce through the resistance at 102.74/51 did not turn out to be successful yesterday, eventually the currency pair should violate this level and resume moving en route to the May high at 103.74, also the current location of the weekly R3.
Being that the Cable is approaching yet another tough obstacle, this time it is the Jan high and the weekly R2 at 1.6390/58, there is a fairly high possibility of a pull-back.
Given the recent behaviour of the currency pair, the resistance at 1.3627/19 (up-trend and monthly PP) is unlikely to nullify the current bullish momentum of EUR/USD.
Pair continues to depreciate and at the moment is testing 0.8123/16.
Pair extended it's gains after a bounce from the 1.0524, the failed to consolidate above 2013 high.
It seems that bears are capitalizing on their gains, but we do not expect that this will incentivize bulls to push the pair higher and cause a rally.
Pair took a step back earlier today, but found support with weekly R1, started appreciating again and at the moment is aiming at the 2009 high.
For the time being USD/CHF stays afloat above the monthly pivot point level, thereby preserving its chances to terminate the sell-off that was initiated after a spike up to 0.9248.
Successfully using the up-trend support line at 101.26 as a springboard, USD/JPY was able to pierce through the 101.88/80, consisting of the monthly R3 and the weekly R1.
Given that a key falling resistance line has been broken (it has been keeping the pair in the down-trend for more than four years), there is a good opportunity for GBP/USD to extend the gains.
EUR/USD keeps on slowly approaching an important resistance level at 1.3627/19.
Despite the density of the support area between 0.8137 and 0.8075, which contains the long-term moving average, 2012 Q4 lows and the monthly S1, the New Zealand continues to grind lower.
USD/CAD has just confirmed 1.0527/10 as the nearest support and is thereby well-positioned for extension of the up-leg.
AUD/USD continues to move south, but is about to encounter the demand area at 0.9082/32, which is mainly created by the monthly S2 level.
Although previously the monthly R2 was able to contain the rally of the currency pair, today the rate jumped above it and is already testing the weekly R1 level.
Although at first it seemed as if the 55-day SMA managed to underpin the pair, the rally initiated by the moving average proved to be shallow once the rate touched upon the resistance represented by the Jun low.
USD/JPY continues to struggle with the resistance area at 102.09/101.80.
As it turned out yesterday, a rebound from the falling resistance line on Monday was not strong enough to send the pair below the support formed by the monthly PP and the 55-day SMA at 1.6114/1.6066.
Even though the currency pair surpassed the 55-day SMA, the up-trend resistance line that connects the lows reached on Jul 9 and Sep 6 remains intact.
Pair peaked above the weekly PP, but failed to consolidate there due to the failure at the 20-day SMA.
Pair failed to consolidate above the August high yesterday, but seems to be willing to retest it once more after it found support with monthly R1 today.
Despite some bullishness yesterday it seems that the pair's bulls are incapable of pushing the pair higher.
"Any hints on the possibility of a negative deposit rate are worth watching particularly closely after last week's newswire reports suggested this was an option under consideration - probably a more palatable tool than QE for the Governing Council."- BNP Paribas (based on Reuters)Pair's OutlookPair failed to consolidate above the monthly R2 and after looking at short term Stochastic we
Just ahead of the monthly pivot point at 0.9053/47 USD/CHF turned around and started a recovery.