Although RSI and ADX show exhaustion, but can see how the USD/JPY has found support above 110.65 –main support- during the Asian session and it is currently moving upwards again influenced by the positive crossover on moving averages, which is seen for the first time in 2016 over daily studies.
We remain bullish on USD/JPY and a break above 111.65 will affirm and accelerate the upside wave, while coming above 112.05 will be a very good signal for short-term bulls and may expose 113.15 later.
Support: 111.05-110.60-110.30
Resistance: 111.65-112.10-112.40
Direction: Bullish
Despite the mild downside movements seen yesterday amid lack of liquidity, but the pair didn’t show a real reflection to the overbought sign over daily studies.
We can’t follow through since trading remains stable above 0.9880 –initial support- and this level should be cleared to see some kind of fulfillment to the aforementioned overbought case.
We also need to witness a breakout above 0.9960 and preferable above 0.9980 to be bullish.
Anyway, we remain neutral today due to the inappropriate risk versus reward ratio.
Support: 0.9905-0.9880-0.9860
Resistance: 0.9980-1.0000-1.0060
Direction: Neutral
Some kind of weakness started to appear on ADX, but moving averages remain negative. So, trading below 1.1125 may extend the bearishness today.
A new break below 1.1070 is required to affirm the bearish scenario, as it represents the broken support line.
Targets reside at 1.0990 –Fib. of 78.6%- and thus, the bearishness should be protected by 1.1220 according to Fibonacci rules.
Support: : 1.1100 – 1.1070 – 1.0990
Resistance: 1.1125 –1.1170 – 1.1220
Direction: Bearish
Sterling failed to achieve a four-hour closing above 78.6% Fibonacci at 1.4680, influenced by RSI.
Meanwhile, a break below 1.4600 is required to affirm moving averages stability and ADX negativity.
Support: 1.4600 – 1.4550 – 1.4500
Resistance: 1.4680 – 1.4725 – 1.4775
Direction: Bearish below 1.4600