USDJPY:
We are seeing strong JPY Support building in at 87.50. The JPY is also in the middle of a volatile Step pattern which is generating lower highs and lower lows. If the JPY breaks Support and can close higher than the previous high the USD may be able to turn things around. However, if the JPY Support holds strong at 87.50 then the JPY will be forced lower by the market and without any clear indication from the BOJ that they will intervene at the same 86.00 handle the JPY could fall drastically and in short order.
USDCAD:
The CAD, fundamentally speaking is sound, but technically it does not appear so. Never the less it is a few moves from turning things around. You can see by the drawn trend lines how volatile this pair has been. Each move lower or higher seems to pause at a major moving average before deciding which direction momentum is prepared to move it in. Yesterday’s price action traded below the 50 MA but could not break the 200 MA. The 100 MA is currently holding strong Resistance for the CAD. If the CAD can take that level out followed by a close below Resistance at 1.0150 CAD bulls are more likely to fall in line. However if the CAD bounces higher than the prior high at 1.0650 off the current 200 MA level then CAD bears will assume control.
EURUSD:
The EUR has rallied 11 big figures before running into its first major level of Resistance, currently holding at 1.30. The EUR was able to break above the 100 day MA, however, EUR bulls for the time being are pulling back and taking some profit. A solid close below 1.27 may have the EUR testing the 50 day MA. Yet, if the EUR continues it’s rally after this slight retrace it may have enough momentum to take out Resistance at 1.30. Certainly a break above that level would be followed with significant price action. However, if the EUR does retest the 50 day MA it may have a harder time breaking through 1.30 over the short term.
Written by bforex.com
