USDJPY struggles for direction, with the 20-DMA capping bullish attempts at 113.70
The dollar resumed its rally on Friday, retaining a bullish bias versus most counterparts at the start of the week. Still, after an early dip towards the 1.1230 support, EURUSD bounced during the European hours to register intraday highs around 1.1275. The pair has retreated marginally since then as the bulls were deterred by the 20-DMA, currently at 1.1283. Despite the recent recovery, the common currency remains within a broader bearish trend and could threaten the 1.1200 figure for the first time in nearly a month if the greenback extends the ascent amid risk aversion in the global financial markets. However, as long as the prices stay above the 1.1220 figure, downside risks are limited in the short term.
GBPUSD dipped to last week’s lows in the 1.3170 area, extending Friday’s losses amid a stronger dollar. The pair bounced slightly since then but stayed below the 1.3200 figure that represents the immediate upside target. If the cable fails to shake off its recent weakness, the prices would register fresh 2021 lows seen at 1.3163 last week. On the four-hour charts, the pound stays below the key moving averages while the RSI struggles to reverse north, suggesting GBPUSD would stay under pressure at least in the immediate term. On the upside, a decisive recovery above 1.3200 would pave the way towards 1.3240, followed by the descending 20-DMA, currently at 1.3270. In a wider picture, the bearish momentum could ease if the pair gets back above the 100-week SMA that arrives just below the 1.3300 figure.
USDJPY briefly dipped to nearly two-week lows just above the 113.00 figure on Friday before bouncing back into positive territory amid the resurgent demand for the greenback ahead of the weekend. Earlier today, the pair slipped to the 111.30 area to derive support from this zone and get back to the flat-line around 113.60 in recent trading. Now, USDJPY struggles for direction, with the 20-DMA capping bullish attempts at 113.70. A decisive break above this moving average would pave the way towards the 114.00 barrier, followed by the 114.25 region that capped gains last week and could act as resistance once again. On the hourly timeframes, the technical picture has improved somehow but the dollar is yet to regain the 200-SMA, currently at 113.65.
Gold prices briefly jumped to December highs in the $1,815 region on Friday but failed to preserve gains and retreated to finish below the $1,800 psychological level. Today, the XAUUSD pair is back under some selling pressure while still holding above the key moving averages that represent the immediate support levels in the $1,795-$1,793 region. The technical picture on the daily charts looks neutral at this point, with the RSI trading directionless around the 52 figure. On the upside, a break above $1,800 on a daily closing basis would pave the way to resume the bullish bias. However, it looks like the path of least resistance is to the downside at this point as the dollar looks steady, capping the upside potential. On the weekly timeframes, the bullion has settled just above the 20- and 100-DMAs that could be revisited if dollar demand intensifies in the coming days.
The Aussie has been under pressure since Friday. The pair derailed the 0.7100 figure and dipped to two-week lows around 0.7080 earlier in the day before bouncing back above the psychological level in recent trading. On the upside, the prices are capped by the descending 20-DMA, currently at 0.7130. In the short term, the pair will likely stay below this moving average and could suffer fresh losses if the mentioned lows give up anytime soon. Of note, the RSI is pointing lower in the neutral territory, suggesting downside risks continue to persist so far. The Australian currency could shrug off the current bearish pressure if the pair gets back above the 0.7200 level on a daily closing basis.