The USDJPY pair remains within a strong uptrend and could climb back to multi-year highs seen last week
The USD index is trading marginally higher on Monday, struggling for direction around 98.75 as risk sentiment looks mixed in Europe, with US stock index futures pointing lower. The greenback needs to overcome this intermediate barrier in order to retarget the 99.00 figure, followed by two-year highs. As such, EURUSD is now targeting the 1.1000 figure after another rejection from the 1.1050 intermediate hurdle that caps the way towards the 1.1100 figure. Earlier recovery attempts attracted the selling pressure, suggesting the path of least resistance for the common currency remains to the downside at this stage. Should the mentioned support give up, the pair may target the 1.0970 zone next. Adding to a more downbeat tone surrounding the euro, the daily RSI is pointing lower while the 20-DMA is turning into resistance. In a wider picture, the outlook for the pair remains bearish as well.
GBPUSD has settled just above the flat-line during the European hours, looking indecisive now as the dollar regains ground. Earlier in the day, the pair encountered a local barrier around 1.3140 before retreating in recent trading. However, the cable holds above the 1.3100 figure that represents the immediate support, followed by intraday lows seen around 1.3090. On the hourly charts, the prices are approaching the 20-SMA while the RSI is pointing south, suggesting the pair could struggle to stay above 1.3100 in the near term. On the upside, a decisive break above the 1.3200 figure would help improve the technical picture somehow. However, in a wider picture, the bearish trend remains intact, with the pound trading below the key weekly moving averages, holding just slightly above November 2020 lows registered last month around 1.3000.
USDJPY is nearly flat around 122.60, refraining from challenging Friday’s highs in the 123.00 area that represents the immediate target for dollar bulls. On the downside, the immediate support arrives at 121.30 where last week’s highs lie. Despite the lack of bullish impetus for the time being, the pair remains within a strong uptrend and could climb back to multi-year highs seen last week above the 125.00 figure after some hesitation. Also on the positive side, the greenback stays well above the ascending 20-DMA, today at 119.90. On the four-hour timeframes, USDJPY derives support from the 20-SMA while the RSI looks directionless around the 54 figure, suggesting the near-term technical picture is neutral for the time being. Should the pair fail to regain the upside momentum anytime soon, the 122.00 figure would come back into the market focus.
USDCHF has been trending north since Friday, holding around 0.9270 during the European hours. Ahead of the weekend, the dollar was rejected from the 0.9280 zone that represents the immediate bullish target for the greenback for the time being. The pair is now holding above the key moving averages while the daily RSI is pointing slightly higher, suggesting the prices could eventually regain the 0.9300 figure should dollar demand continue to strengthen in the near term. On the downside, the immediate support arrives at 0.9230 where the 100-DMA, followed by the 200-DMA, today at 0.9210. In a wider picture, USDCHF struggles to regain a robust upside impetus following three weeks of a solid bearish correction from one-year highs seen above 94.00. In the immediate term, the greenback needs to hold above the 0.9240 zone in order to stay afloat.