USDJPY has recovered partially following a strong sell-off witnessed last Friday
The euro climbed to nearly two-week highs around 1.1940 on Monday, extending gains amid the prevailing risk-on tone in the global financial markets, with the greenback staying on the defensive to start the week. Once above the mentioned intraday tops, the pair could challenge fresh long-term highs above 1.1965 if the dollar remains under pressure in the short term. the daily RSI is pointing higher and hasn’t entered the overbought territory just yet, suggesting further gains could lie ahead. On the downside, the immediate support arrives at 1.19, followed by the 1.1880 area.
GBPUSD rose to fresh 2020 highs earlier in the day but was rejected from the 1.3370 area and turned marginally negative on the daily timeframes. Still, the pound stays above the 1.33 handle, which implies another bull run after a short-lived pause. If the pair fails to regain the bullish bias in the near term, this level could turn into resistance again. In this scenario, the cable could get back below the 1.3250 region and slip below 1.32. The daily RSI is pointing slightly downwards marginally below the overbought territory, suggesting the downside correction could be limited.
USDJPY has recovered partially following a strong sell-off witnessed last Friday. The pair managed to hold above the 105.00 handle and bounced to the 20-DMA in recent trading. However, the dollar is yet to break above this important moving average that arrives at 106.00. The pair needs to make this level into support in order to extend the current upside correction. Otherwise, the greenback may come back under the selling pressure if risk sentiment deteriorates any time soon. In a wider picture, the pair remains within a bearish trend as long as the prices stay below the 20-weekly SMA.
The precious metal is little changed on Monday, as the gold market looks directionless after a local rally witnessed late last week. The bullion has settled marginally below the $1.970 area, struggling to overcome the $1,976 intermediate resistance since last week. on the other hand, the prices are holding above the $1,900 psychological support, suggesting the metal could resume the ascent following the current consolidation. On the hourly charts, the bullion has recovered to the flat line in recent trading after a modest retreat earlier in the day.
The cross is rallying on Monday, buoyed by broad-based weakness in the Japanese yen amid positive risk sentiment. The pair bounced from the 125.40 region and climbed to the 126.60 figure in recent trading. Still, the euro refrains from challenging local highs around 126.77 seen on Friday. If the yen remains on the defensive in the short term, the cross could make another bull run, considering the daily RSI is pointing north and hasn’t entered the overbought territory just yet. The immediate support now arrives at 126.00, followed by the 125.40 region.