While being capped by resistances located at 100.77 and a key one at 102.55, the focus remains on the downside. The short-term target lies at 94.92. However, in the longer term EUR/JPY might dip down further, to 88.97.
EUR/USD has rebounded from 1.2860, as bearish momentum was not able to penetrate the support. For now the currency couple is anticipated to attempt to break through 1.2971 and reach 1.3145/1.3250 before it recommences declining.
The daily market forecast mean at 0.9383 has been pierced on fears the EU economy might commit a recession spreading to the US.
USD/JPY added to losses today as investors bought safe-haven yens against USD as investors flee to the Japanese currency on debt woes, causing the daily target at 77.07 to breach.
The British pound moved downwards today after the UK Prime Minister David Cameron said the economy is vulnerable to the EZ turmoil; the daily market participants' mean target (1.5509) has been breached.
The euro continued trading in a bearish trend after the manufacturing output shrank for the fifth consecutive month, trading below 100.00 on Monday.
The pair started New Year with breaching the daily forecast mean at 1.2946 and slipping lower after the EU manufacturing output contracted for the fifth month in a row.
As long as the currency couple is supported by a strong area situated at 0.9350/60, the bias remains bullish. The Dollar is thus expected to carry on appreciating relative to the Swissie before a height of 0.9500/25 is approached.
A breach of 77.00 is likely to trigger further sell off. At the moment USD/JPY is heading toward initial support zone at 76.65/50, while a subsequent area is at 76.22/15. In case supports do not withstand bearish momentum, marks such as 74.45 or 73.90 may be reached.
Near-term outlook for GBP/USD is bearish. To overcome present weakness the pair has to pierce through a key resistance located at 1.5560/70. In case the prices bounces off the latter level, it might plummet down to 1.5100.
A close below 100.00 implies extension of the current dip, which may last up until 98.40 is contacted. However, this support is anticipated to hold the downward pressure and send the currency pair back up.
The Euro - American Dollar pair is hovering below a tough resistance at 1.3000, while a key level is located at 1.3100/56. The outlook is negative for the pair with the possibility of EUR/USD touching 1.2750.
USD/CHF is showing a bullish bias after the US economy posted 0.2% Core CPI, indicating the US economy is gaining strength, though the daily target at 0.9432 has not been reached yet.
The American dollar inched today as investors were selling yens against USD after the US economy posted 0.2 Core CPI versus expected 0.1%. As a result, the daily target at 77.80 has been crossed.
The British pound continued trading in a flat trend today on uncertainty over the UK economy and the prospects of the Eurozone, causing the market mean at 1.5496 to breach.
The single European currency is trading within 101.-102 price range on further uncertainty with EZ, though level 101.32 - the daily forecast consensus – was not tested today after the Euro pared intraday losses on the ECB chief statement.
The daily forecast mean at 1.3009 has been touched, though the pair recovered its intraday losses after Mario Draghi, the ECB chairman, stated the euro zone is on the right track.
Despite that USD/CHF pair is somewhat weak at the moment, the overall picture remains bullish. In case the price falls, a tough level located at 0.9375 should be able to provide sufficient support and send the pair back up.
The bias for USD/JPY is slightly bearish, with the possibility of the currency couple dipping down to 77.00, since a tough resistance located at 78.25 is expected to repel rallies. However, the price should first violate a rather strong support at 77.50.
A break below 1.5400 is a negative sign for the Cable, even though it is presently recovering from its recent low at 1.5355/65. To confirm a long-term recovery it should re-establish 1.5400 as a key level.
EUR/JPY attempts to stabilise near a support situated at 100.00, nonetheless this endeavour is expected to fail and trigger a sell off down to 99.50. In case the latter level is breached as well, a pullback might extend to 99.00.
Even though the pair managed to recover from 1.2850, the outlook remains bearish. As long as a key resistance at 1.3000/50 caps EUR/USD from above, bullish momentum is unlikely to appear.
The pair continues trading in the 77-78 price range against the Yen as investors were spooked by more-than-expected US unemployment claims, thus the daily market participants' target at 77.87 has been pierced.
The pair slumped today and breached the daily forecast mean at 1.5508 after the Chicago PMI rose more than expected (62.5 vs. 60.4 estimate).