Daily FX Technicals: USD/JPY Soars; EUR/USD Moves Sideways
ICN.com | Feb 01, 2016 06:07AM ET
USD/JPY
USD/JPY has soared toward the technical targets area we defined on Friday at 121.75, where the 76.4% Fibonacci of the wave seen on the graph exits.
Being close to this strong resistance offers inappropriate risk versus reward ratio over intraday basis, as it should be cleared to resume the bullish recovery.
On the downside, coming below 120.65 is negative for intraday traders.
Anyway, we will be on the sidelines today to see whether the pair will hit 76.4% level or not.
Support: 120.65-120.50-120.00
Resistance: 121.75-122.10-122.35
Direction: Sideways
USD/CHF
USD/CHF has inched higher on Friday, testing the key levels between 1.0240 and 1.0265 where it started to consolidate due to the sensitivity of these strong resistances.
During the Asian session didn’t show the ability to breach this level, while RSI becomes very close to overbought areas.
Thus, we believe that, it is better to stand aside to see how the pair will behave between 1.0200 and 1.0265.
Note that Friday’s strong upside actions didn’t assist ADX to be bullish enough to suggest potential positions.
Support: 1.0175-1.0130-1.0110
Resistance: 1.0250-1.0270-1.0320
Direction: Sideways
EUR/USD
EUR/USD has moved sideways after failing to clear 1.0800 during the Asian session along with moving averages coverage at 1.0875, which is a few pips below 1.0890.
ADX shows decrease in bears’ power, while no bullish signal appeared. In the interim, RSI moves below 50.00 despite attempting to move higher.
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Anyway, we need a break below 1.0800 to suggest bearish actions towards 1.0745.
Support: 1.0835 – 1.0800– 1.0745
Resistance: 1.0890 –1.0935 – 1.0985
Direction: Neutral but bearish below 1.0800
GBP/USD
The 4-hour chart shows that prices have moved within a tight range between moving averages from the topside at 1.4295 and 127.2% Fibonacci at 1.4190.
Trading between those levels is accompanied with weakness on trend indication according to ADX.
RSI moves below 50.00, but it remains neutral and thus, we will be on the sidelines.
Support: 1.4230 – 1.4190 – 1.4100
Resistance: 1.4290 – 1.4325 – 1.4390
Direction: Sdeways
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