Once below 104.20, USDJPY will likely suffer more significant losses in the days to come
The euro is marginally lower around the 20-DMA during the European hours after an earlier rejection from intraday highs around 1.1870. The pair still refrains from challenging the 1.19 handle, pointing to a lack of bullish potential at this stage. Should the 1.1830 intermediate support give up, the 1.18 figure will come back into market focus. A daily close below this level would signal a worsening short-term technical picture. Furthermore, it looks like the common currency is forming a symmetrical triangle on the four-hour timeframes. If so, the prices could decline to 1.1740 before a bounce takes place. A daily close above the 1.1850 region could be a sign of the easing downside pressure.
GBPUSD is flat on Friday, being stuck between the key daily moving averages since September 8. As long as the pair is holding above the 1.2670 area, downside risks are limited. On the upside, the important hurdle arrives at 1.30. This level has been capping bullish attempts this week. As MACD is declining and the RSI is flat on the daily charts, it looks like the path of least resistance is to the downside at this stage. However, considering dollar weakness, the pound could refrain from another bearish wave and will likely remain in a consolidative mode for the time being. On the weekly timeframes, there is strong support from the 100- and 20-SMAs.
USDJPY has been grinding lower for the fifth consecutive day already, with the selling pressure showing no signs of abating. The pair extended losses to 104.26 earlier in the day and could dip to March lows if the 104.20 area is derailed. However, as the daily RSI is about to enter the oversold territory, a bounce around the current levels should be expected. Otherwise, the greenback will likely suffer more significant losses in the days to come. Apart from technical signals, the pair is driven by risk sentiment, so should risk aversion get more pronounced, the pair will keep bleeding in the short- to medium-term. On the four-hour timeframes, USDJPY keeps following the descending 20-SMA, adding to the negative picture surrounding the dollar.
The Kiwi rallied to April highs just below the 0.68 handle on Friday, climbing for the sixth day in a row. The pair came across resistance around the psychological level and retreated since then but stayed in the green on the daily charts. It looks like the New Zealand dollar could need the additional bullish catalyst to challenge the mentioned hurdle. On the other hand, the pair will likely resume the ascent after short-term profit-taking, as the daily RSI is pointing upwards and remains well below the overbought territory. If so, the prices could target the 0.6820 region after a break above 0.68.
The Aussie turned negative on Friday after a six-day winning streak. Earlier this week, the pair was rejected from the 0.7345 area and has been struggling to regain its bullish bias since then. As of writing, AUDUSD was changing hands around 0.73 after a dip to intraday lows around 0.7280 earlier on the day. On the four-hour charts, the prices dipped under the 20- and 100-SMAs, however, the RSI looks flat, suggesting the downside potential is limited from here. Of note, AUDUSD derived intraday support from the 20-daily moving average. If this level withstands the pressure, a bounce should be expected in the short term. Otherwise, the mentioned lows could give up and turn into resistance.