EURJPY tried to challenge the 126.00 handle for the first time in a week
The euro gave up yesterday’s gains and dipped below 1.18 as dollar demand picked up again in recent trading. The pair dipped to five-day lows around 1.1780 and could threaten the 1.1750 next local support if the pressure persists in the near term. In the longer-term charts, EURUSD continues to trade within a bullish trend, targeting the 1.20 key barrier. If the common currency retreats below 1.17, the technical picture could deteriorate. As of writing, the pair was changing hands marginally above the mentioned lows. As the daily RSI is pointing south, the euro may stay under pressure in the short term, and a daily close below 1.18 would act as another bearish sign in the short term.
The cable turned marginally lower in recent trading, struggling to break above the 1.3170 local resistance that is standing on the way toward 1.32. Despite the pair staging a recovery yesterday, downside risks prevail in the short term, with further sales could bring the prices below 1.31. On the other hand, as long as the pound stays above 1.3050, the overall technical outlook remains positive. On the weekly timeframes, the pair remains close to March highs and could resume the ascent after the current hesitation.
USDJPY is little changed on Wednesday, staying above the 106.00 figure after the recent recovery above the 20-DMA. However, the upside potential in the pair is still muted as long as the dollar remains below the 100-DMA that arrives around 107.00. The daily RSI is neutral, suggesting the current consolidation could continue for some time in the short term before the pair decides on the further direction. On the four-hour charts, the greenback bounced from the 200-SMA in recent trading but the pair needs to overcome the 106.60 area in order to shrug off a slight bearish bias seen in the daily timeframes.
The Kiwi continues to climb higher on Wednesday but still lacks the upside momentum to make a decisive break above the 50-DMA which turned into resistance after last week’s rejection from local highs around 0.6650. However, the bulls reemerged marginally below the 0.65 handle, pushing the prices higher since then. It looks like the New Zealand dollar could continue its upside attempts in the short term but the longer the mentioned moving average acts as resistance, the lower are the chances of a bullish extension in the short term. At the same time, should the greenback come under renewed selling pressure, the pair may climb above 0.6575 and retarget the 0.66 barrier.
The cross tried to challenge the 126.00 handle earlier in the day for the first time in a week but was rejected from local highs and entered the negative territory following two days of gains. The euro has settled around the intraday lows in the 125.40 area since then. A break below this level will pave the way towards 125.00. The daily RSI reversed south after a short-lived recovery, suggesting the selling pressure will persist in the near term. On the four-hour charts, the pair is flirting with the 100-SMA. Once below this moving average, the common currency could retarget the 124.40 support zone. In a wider picture, the prices remain within a strong bullish trend despite the retreat witnessed last week.