EURJPY exceeded the 132.00 figure for the first time in nearly three months before reversing the rally
The dollar has been retaining a bullish bias since the start of the week, with traders shifting focus to the US CPI report due later in the week. Also, an unstable risk tone adds to the upside pressure surrounding the greenback. As such, EURUSD keeps retreating from recent peaks seen marginally below the 1.1500 figure, challenging the 1.1400 zone during the European hours. Should this level give up anytime soon, the common currency will retarget the 1.1200 mark if the 20-DMA, currently at 1.1335, gives up. On the four-hour timeframes, the prices are now back below the ascending 20-SMA while the RSI is pointing lower in neutral territory, suggesting the path of least resistance is to the downside at this point.
The cable makes some bullish attempts following two days of losses. The pair managed to bounce back above the 100-DMA that capped sellers earlier in the day. GBPUSD was last seen changing hands around 1.3550, up just 0.12% on the day. This zone is now strengthened by the 20-DMA, so a decisive recovery above this immediate barrier would pave the way for more robust gains in the near term. Should the pair turn the 20-DMA back into support, the bulls will retarget the 1.3600 figure, followed by the 1.3630 zone that capped gains last week. In a wider picture, the pound stays buoyed as long as the prices hold above the 100-week SMA, currently at 1.3344. On the downside, the immediate support arrives in the 1.3500-1.3490 region.
USDJPY regained upside momentum after a brief dip witnessed on Monday. The dollar derived support from the 114.90 area to bounce back above 115.50 earlier in the day. However, the pair has retreated partially since then to settle around 115.35 during the European hours. A daily close above this region would pave the way to fresh local highs beyond 115.55, with the next target for dollar bulls coming at 115.70. It looks like USDJPY may need an extra impetus to overcome this hurdle in the coming days. Should the selling pressure reemerge anytime soon, the prices will retarget the 115.00 figure, followed by the 20-DMA, currently at 114.60. The pair was last seen trading at 115.37, up 0.22% on the day as traders stay unsettled amid mixed risk sentiment across the financial markets.
The cross exceeded the 132.00 figure for the first time in nearly three months on Monday. However, the pair failed to preserve gains and dipped amid profit-taking that tool the euro below 131.70 on a daily closing basis. Today, EURJPY stays on the defensive amid broad-based weakness surrounding the common currency. It looks like the pair could stay under some pressure in the near term, albeit the bearish momentum looks limited for the time being. On the hourly timeframes, the technical picture has deteriorated as the prices have slipped below the 20-SMA while the RSI turned slightly lower in neutral territory. In a wider picture, a decisive break above 132.00 on a daily closing basis would open the door for fresh multi-week highs.
EURGBP rallied to fresh 2022 highs around 0.8477 at the start of the week before reversing gains eventually as traders opted to take some profit instead of pushing the euro towards the 0.8500 figure. The bearish correction continues on Tuesday, with the cross changing hands in the 0.8420 area during the European hours. As long as the common currency holds above the 0.8400 figure, the downside potential looks limited, however. On the hourly charts, EURGBP is approaching the ascending 100-DMA that arrives just above the 0.8400 mentioned support zone. On the positive side, the hourly RSI has already bounced from the oversold territory and was last seen pointing higher, suggesting the pair may refrain from a deeper retreat at least in the immediate term. On the upside, the immediate target now arrives at 0.8450.
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