The pair is flirting around the 0.9060/75 pivot levels as USD/CHF is going through the consolidation phase. The pair has to hold above the 0.9040/50 zone (200-day MA) in order to maintain a flat trend. A recovery off the pivotal levels (0.9060/75) would expose the 0.9317/42 resistance (October and November 2011 highs).
USD/JPY slipped lower, piercing the 80.00 psychological mark and the lower boilinger band at 80.27 respectively. Therefore, the pair is likely to continue trading in a bearish trend, thus the next strong support traders could face is located around 78.35/50 (200-day MA).
GBP/USD is still trading above the 1.6200 mark—the highest level since 2008 and yesterday it managed to hit the 1.6300 level. Yet, the pair might retrace at least to the 1.6150/1.6180 levels after such solid movement as from the fundamental point of view, the British pound has no basis for keeping such a strong value compared to the US dollar.
EUR/JPY moved lower yesterday and at the moment the pair is approaching the lower boilinger band at 105.27 and, if a breach takes place, the next support at 104.46 would be exposed, confirmed by the 200-day MA.
Yesterday the pair traded flat, indicating that bulls losing momentum, though it is too soon to speak about the trend reversal as the pair is holding grounds above the 55-day MA. However, in order to continue the upward rally, EUR/USD has to pierce a fierce resistance on the 1.3270/85 zone, confirmed by the 200-day MA and upper boilinger band. A breakthrough here would expose April (1.3310)
"There are no real underlying fundamentals that are supporting the euro at these levels. I'm fairly bearish on Spain and the broad euro zone as a whole."- Rochford Capital (based on Bloomberg)Industry outlookLast week was positive for EUR/USD, though the next barrier the pair has to test is located near 1.3287/91 zone as the 5-month downtrend and the 8-month channel.
"The latest economic statistics suggest that the international economic recovery will continue, although growth rates are likely to be on the low side by comparison with typical recovery phases"- Swiss National Bank (based on CNBC)Industry outlookAs the currency pair currently remains under the downward pressure, 0.9066—Friday's key support—is being tested at the moment. If this level is successfully pierced, 0.9000
"The amount isn't much as a percent of Japan's economy, so the impact on the yen was limited, but it "has added a slight risk-on tone to the markets in general."- Société Générale (based on MarketWatch)Industry outlookUSD/JPY is trapped between the 81.33 and 80.10 levels and if the pair fixes today below the latter level, it could expose the further
"Technically the UK is in recession but the pound has not sold off massively, which suggests maybe it has found a new range ... Sterling is benefiting from people diversifying out of euros and there aren't many choices out there."- Investec (based on Reuters)Industry outlookGBP/USD shows strong performance for the second consecutive week and it shows no signs of stopping
"Watching Spain now is exactly like watching Ireland around October 2010 before Ireland was forced into its bailout"- Roubini Global Economics (based on Bloomberg)Industry outlookEUR/JPY slumped lower last week as the market aims to stick to the near-term support level at 106.49. It might approach the 55-day MA located and higher Bollinger band around 107.80/99 and a breach here would
Given that 0.9066 is losing its status as a key support, 0.9000 and 0.8933 (200 day ma) are now in danger of being challenged. However, in case these supports are tested, positive outlook is likely to be restored and then shift focus to 0.9317/42.
USD/JPY is supposed to gradually erode a resistance at 81.43, provided that the pair does not breach a support level situated 80.29/11 in the interim, which is currently guarded by 80.40. In the longer term perspective USD/JPY should target 85.53.
GBP/USD shows no intention of stopping its current rally and may carry on surging on the condition that bearish correction will not result in a dip below a support at 1.6062/63. Resistances are at 1.6199, 1.6028 and 1.6298.
Bullish momentum has weakened, but should still persist, driving the currency pair upwards. The nearest support is located at 106.33, reinforced by a subsequent level at 105.93. EUR/JPY is anticipated to encounter 108.00 within the next two weeks.
EUR/USD appears to be unable to approximate to a confluence of resistances at 1.3292/97, leaving the pair capped for the next few weeks. The currency couple is now expected to aim for 1.2974/54 before seeking even lower levels.
A clash of the price and a key support at 0.9066 should lead to another leg up of the pair. Robust reignition of bullish momentum would ensure USD/CHF attaining 0.9317/42, before attempting to reach 0.9595 in the long term.
As soon as USD/JPY overcomes downtrend resistance at 80.84/81.53 we are likely to observe a rise of the pair up to 82.00 first, then 83.31/39 and 84.14. At the same time dips should be limited by supports at 80.84 and 80.29.
Persistence of the Cable at 1.6167 might bear fruit. Even though violation of the resistance is not favoured scenario, it will result in an increase of the price of up 1.6425. The initial support level is located at 1.6062, followed by 1.5984/92 and 1.5888.
EUR/JPY currency couple is slowly crawling upwards after stabilising near 106.33/105.95. Breach of 108.00 would imply additional bullishness of the pair with the possibility to attain 108.62 en route to 109.95.
Despite a breakout of 1.3204 (55 day ma), EUR/USD is still capped by a cluster of resistances at 1.3296/1.3305, which is unlikely to allow a rally to extend up to 1.3385. The nearest supports are at 1.3045 and 1.2995/1.3004.
Following a flat movement of USD/CHF just above 0.9066 in the coming days, bullish momentum is expected to be reignited, shifting attention to a resistance at 0.9317/42. Within the next three months the pair might even attain 0.9595.
The currency couple continues to be contained by a resistance downtrend, which is about to be eroded. As a result, levels at 83.31/39 and 84.19 will be targeted. In the meantime, losses of the price should be limited by supports at 80.75 and 80.29.
GBP/USD is viewed as incapable of overcoming a tough resistance located at 1.6167, challenge of which should result in a dip to 1.5984. Nonetheless, the unlikely possibility of the Cable rallying up to 1.6199 may not be ruled out yet.
EUR/JPY is currently consolidating near 106.33/105.95, before it undertakes an additional attempt to break above 107.48. Breach of subsequent resistance at 108.00 will encourage the pair to reach out for 108.62.