EURJPY bounced from the 200-daily SMA early on Monday and extended intraday gains to the 124.30 area
EURUSD has exceeded the 20-DMA in recent trading, having climbed to intermediate resistance of 1.1770 that is standing on the way toward the 1.18 barrier. A daily close above the mentioned moving average that arrives around 1.1760 would be a confirmation of the latest breakout. The daily RSI turned bullish in the neutral territory, suggesting further gains could lie ahead if risk sentiment remains positive in the near term. On the four-hour timeframes, the euro is targeting the 200-SMA that now arrives at 1.18. As long as EURUSD stays below this upside hurdle, the current bullish bias looks unsustainable. Furthermore, the RSI in the same charts is nearing the overbought territory, which implies at least some consolidation around the current levels with a potential downside correction.
GBPUSD managed to confirm a recovery above the 20-DMA and extended Friday’s gains at the start of the week. The prices climbed to more than two-week highs around 1.2985 on Monday, still refraining from challenging the 1.30 handle last seen in mid-September. On the other hand, now, as the pound is back above the key moving averages, the technical picture has brightened on the daily timeframes, with the RSI pointing slightly higher in the neutral territory. Should GBPUSD preserve the current upside momentum in the short term, the pair could challenge the 1.30 key hurdle and turn it into support. In this scenario, the 1.3250 area will come back into the market focus in the medium term.
USDJPY briefly dipped below the 105.00 handle on Friday and finished the week with marginal losses. Today, the pair regained its bullish bias and has got above the 20-DMA in recent trading. Still, the dollar failed to challenge the 105.70 intermediate resistance and retreated slightly from intraday highs. Should the greenback finish the day above the mentioned moving average, bullish continuation should be expected in the short term. Otherwise, the 105.00 support zone will come back into the market focus. In a wider picture, USDJPY has been following the descending 20-week SMA, staying below it for a month already, which is a bearish longer-term signal, suggesting downside risks will continue to persist at least in the short term.
Gold prices recovered from intraday lows registered around $1,887 earlier in the day and turned slightly positive on the intraday charts in recent trading as the precious metal managed to capitalize from a weaker dollar. On the other hand, the bullish potential in the gold market is being capped by the dominating risk-on sentiment in the global financial markets. As of writing, the bullion was changing hands just below the $1,910 area and shy of the 20-DMA that capped bullish attempts last Friday. On the downside, the key support arrives in the $1,855 where the 100-DMA arrives. As long as the pair stays above this moving average, downside risks are limited.
The cross bounced from the 200-daily SMA early on Monday and extended intraday gains to the 124.30 area in recent trading. The pair rallied amid broad-based weakness in the safe-haven Japanese yen that brought EURJPY to the highest levels since September 18th. However, the common currency is yet to confirm a break above the descending 20-DMA on a daily closing basis as a rejection from this moving average could trigger a bearish correction if risk aversion reemerges any time soon. On the four-hour charts, the technical picture looks bullish, especially as the pair has broken above both the 20- and 100-SMAs during the European hours while the RSI continues to point higher and hasn’t entered the overbought territory just yet.