USDJPY briefly pierced the 104.00 handle for the first time since March
As risk sentiment deteriorated on Monday, the euro came under widespread selling pressure and was once again rejected by the 20-DMA. EURUSD dipped to 1.1760 and stays under pressure ahead of the opening bell on Wall Street. On the downside, the 1.1740 area comes back into market focus, as a break below it will open the way to 1.17 for the first time since mid-August. If the common currency refrains from a deeper retreat in the short term, the pair could trim losses and regain the 1.18 level first. However, as the dollar remains on the offensive versus high-yielding counterparts, it looks like the path of least resistance is to the downside so far.
GBPUSD remains stuck between the key moving averages, losing ground since last Friday when the pair was rejected from the 1.30 figure. This level remains the key obstacle for bulls now while on the downside, the 1.28 handle is coming back into market focus. The daily RSI is pointing slightly lower in the neutral territory, but it looks like further selling pressure could be limited at least as long as the prices stay above 1.28. If this intermediate support gives up, the 200-DMA around 1.2730 will come back into market focus. As long as the pound stays above this moving average that has been acting as support since late-July, downside risks remain relatively muted.
USDJPY briefly pierced the 104.00 handle for the first time since March and has been holding marginally above this level since then, struggling to stage a bounce despite the daily RSI has entered the oversold territory in recent trading. If this psychological level fails to withstand the pressure, a more aggressive plunge should be expected. In this scenario, the 101.00 figure will come back into market focus. Otherwise, a correction to 104.50 could be expected. In a wider picture, as the greenback remains below the key moving averages, the overall technical picture remains bearish. On the four-hour charts, the dollar has been following the descending 20-SMA since mid-September, suggesting the pair could suffer deeper losses before a reversal takes place.
The cross extends its downside correction from the 127.00 handle reached on September 1. The pair remains on the defensive since then and is now nearing the 100-DMA that could act as support and trigger a correction. This moving average arrives marginally above the 122.00 handle, so if the prices manage to hold above this level, a bounce should be expected. Otherwise, the common currency will target the 200-DMA next. On the upside, the immediate resistance now arrives at 123.00, followed by 123.40. As risk aversion persists in the global financial markets, the pair will likely stay under pressure at least in the short term.
Gold prices accelerated to the downside in recent trading after some consolidation earlier in the day. The precious metal failed to cling to the 20-DMA and slipped to September 9 lows around $1,921. As a result, the daily RSI turned lower in the neutral territory, suggesting there is room for a further decline in the short term. However, it looks like downside risks are limited at this stage, and further bearish attempts could be capped by the $1,900 handle. As long as the prices stay above this figure, the technical picture remains neutral. On the four-hour charts, the RSI is nearing the oversold territory, which implies a bounce from the mentioned lows.