Bucking the trend, USDJPY derailed the ascending 20-DMA for the first time in two months
The USD index advanced to fresh twenty-year highs around 104.43 before retreating marginally. The greenback continues to derive strong support from the risk-off environment that dominates the market amid hawkish Fed, geopolitical tensions, and worries about recession. As such, EURUSD fell back below 1.0500 to notch early-2017 lows around 1.0420 in early European deals. The next target arrives at 1.0400 and could be reached in the near term as the buck looks ready for further gains. On the four-hour charts, the RSI turned flat, suggesting the immediate selling pressure could be easing for now, but the overall technical picture remains bearish. Now that the common currency failed to hold above the 1.0500 figure, the near-term outlook for the pair deteriorated further, with parity level staying in the market focus while below the 100-DMA, today at 1.1070.
GBPUSD has been losing ground for the sixth day in a row on Thursday. The pair dipped to fresh long-term lows around 1.2165 and was last seen clinging to the lower end of the extended trading range. As the cable failed to hold above the 1.2200 mark, the selling pressure intensified despite the oversold conditions as the greenback resumed the ascent after a short-lived pause. The next target arrives in the 1.2070 area last seen in May 2020. On the upside, the pair now needs to regain the 1.2250 zone in order to avoid deeper losses in the immediate term. On the weekly timeframes, the pound has been on the defensive for the fourth week in a row, with the RSI pointing south in the oversold territory, which implies there is room for deeper losses at еthis stage. On shorter-term charts, GBPUSD has settled below the key moving averages, adding to a bearish technical picture.
USDJPY failed to revisit the 131.00 mark on Wednesday to come under pressure that has intensified today. As a result, the pair dipped to late-April lows around 128.40 and was last seen trading just above this zone during the European hours. In the process, the dollar derailed the ascending 20-DMA for the first time in two months, suggesting the pair could see a deeper retreat in the near term. Now, the market focus shifts to the 128.00 level, followed by the 127.00 mark. However, USDJPY remains within a broader uptrend while above 115.00. On the upside, the resurgent demand would push the pair back above the mentioned moving average, today at 129.00, followed by the 130.00 figure. On the hourly timeframes, the RSI turned flat in the oversold territory, suggesting further losses could be limited for the time being.
BTCUSD has been bleeding for the eights day in a row on Thursday. The coin briefly plunged to the lowest level since December 2020 around $25,200 earlier in the day before rebounding back above $27,000 in recent trading. However, the recovery potential looks limited at the moment despite the extremely oversold conditions. On the shorter-term timeframes, the downside pressure seems to be easing, but the digital currency is yet to regain the 20-SMA in order to see a more robust rebound at this stage. In a wider picture, the path of least resistance remains to the downside, especially as the BTCUSD pair has settled below the $30,000 mark following the recent plunge. Should the pressure reemerge anytime soon, bitcoin could challenge the mentioned lows to target the $20,000 mark eventually.
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