Considering that USD/JPY is currently facing a number of tough supports after falling through the 55 and 100-day SMAs and this week the pair opened with a sizeable downside gap, there is a good chance the U.S. Dollar will soon start outperforming the Japanese Yen.
Since the very beginning of September the Cable has been on the rise and because of its strong bullish momentum has managed to overcome a series of important resistances.
EUR/USD retains the upside potential, as it is still trading above the 23.6% Fibonacci retracement level of the Sep 6 - Sep 19 rally.
For NZD/USD to reaffirm the intention to resume a recovery it needs to climb over 0.8317/12 first, then overcome 0.8479/62, the resistance ahead of which the currency pair made a U-turn last week.
For the time being nearly all of the daily indicators are bearish and the resistance at 1.0342/29 prevents the rate from going any higher.
The sell-off persists, but one of the key supports, the one at 0.9321, for now remains intact.
EUR/JPY keeps on wobbling between the weekly pivot point at 133.72 and the rising trend-line at 132.75/51, being unable to gain upward traction.
Pair seems to be range bound—bulls cannot breach June low and bears cannot push the pair below 0.908 support line.
Pair remains supported by the 55 and 100-day SMAs.
Pair seems to be inching up higher, but remains capped.
Pair is slowly inching lower, but 1.347/45 keeps it supported. However, upside potential remains limited.
Apparently, NZD/USD's movement from 0.7720 has not yet run its course, but simply underwent a correction that took the rate below 0.8317/12 that initially was expected to weather the sell-off.
The signals provided by the daily studies largely coincide—nearly all of them are bearish.
The currency pair has finally eroded both the weekly pivot point and monthly R2 level, meaning that the next support at 0.9321/14 is now exposed.
The weekly pivot point continues to resist appreciation of the Euro relative to the Yen.
Bulls are keeping the pressure on the pair, but can't advance above the 0.913/17 area.
Pair has been trading between 98 and 99 JPY for quite some time now.
It seems that 23.6% Fibo (September rise) is stronger support level than anticipated as it sent the pair back above 1.60 and accelerated uptrend support.
23.6% Fibo (September rise)/August high held and sent the pair towards the September high it reached just a week ago.
NZD/USD effortlessly pierced through 0.8317/12 yesterday and is now in the vicinity of the next support level at 0.82.
Although yesterday it seemed as if the support at 1.0285/71 may fall victim to the selling pressure, the 200-day SMA, together with the weekly pivot, withstood the assault and pushed USD/CAD towards an important level at 1.0348/42, where the monthly S1 and 20-day SMA reside.
Today AUD/USD showed even more weakness after a failure to overcome the resistance represented by the monthly R3 at 0.9528.
Just as suspected, once EUR/JPY touched upon the positively-sloping trend-line at 132.56/51, the currency pair immediately went upwards.
Pair is trying to rise above the June/August lows (at the moment it is trading at June low).