EURJPY extends the ascent for the fourth day in a row on Thursday
After volatile trading on Wednesday, EURUSD resumed the ascent today and jumped to October 27 highs around 1.1835 during the European hours. Now, as the common currency has regained the 1.18 handle, it needs to confirm the latest breakout on a daily closing basis. Otherwise, profit-taking could take place after a local rally. The daily RSI is pointing strongly higher while staying in the neutral territory, suggesting further gains could lie ahead, especially as the greenback remains on the defensive nearly across the board amid positive risk sentiment in the global financial markets. If the pair fails to retain the current upside bias, a break below 1.18 will shift market focus back to the 20-DMA, today at 1.1760.
GBPUSD regained the bullish bias on Thursday, still staying above the 100-DMA that continues to act as the key support. The pair has also climbed back above the 20-DMA and registered intraday highs in the 1.3080 area, staying shy of the 1.31 barrier and yesterday’s highs around 1.3140. On the four=hour timeframes, the cable is back above the key moving averages which implies that the bearish risks are limited in the near term. On the other hand, the RSI is nearing the overbought conditions, suggesting the ascent could be exhausted soon. For a bullish extension, the pound needs to make a decisive break above the 1.31 immediate resistance.
USDJPY failed to hold above the 20-DMA on Wednesday and came under selling pressure today. As a result, the pair briefly dipped to fresh March lows marginally below 104.00 and has settled just above this level in recent trading. This figure could act as support and trigger a bounce in the short term. In this scenario, the greenback will first target the 104/50 region, followed by the 104.70 area and the mentioned 20-DMA, today at 104.90. The daily RSI is pointing south while nearing the oversold territory, suggesting the downside momentum could be exhausted soon. Otherwise, the 104.00 figure will turn into resistance for the first time since March.
The cross extends the ascent for the fourth day in a row on Thursday. The pair bounced from the July lows in the 121.60 area registered late last week. Since then, the euro retains a bullish bias due to positive risk sentiment that caps the safe-haven yen demand. However, the further upside movement could be limited due to the presence of the 100- and 20-DMAs ahead. As of writing, EURJPY was changing hands in the 123.00 area while the next short-term resistance represented by the 20-DMA arrives at 123.40. Once above this moving average, the pair could challenge the 123.65 region where the 100-DMA arrives. On the downside, the euro could encounter support around 122.50 if the bullish impetus wanes any time soon. At this stage, the path of least resistance is to the upside.
Bullish attempts were capped by the 20-DMA earlier in the day, sending the USDCAD pair back to the 1.31 handle in recent trading. Yesterday, the price briefly derailed this support zone but managed to bounce quickly. Despite the USD retaining a bearish intraday bias, the daily RSI looks directionless in the neutral territory, suggesting the bearish potential is limited at the moment. However, a decisive break below the mentioned figure would mark deterioration in the short-term technical picture for the pair. In this scenario, the market focus will shift to the 1.3080 area last seen on October 21. On the upside, the key hurdle arrives around 1.3180 where the 20-DMA lies. as long as the pair stays below this moving average, downside risks prevail in the short term.