USDJPY still refrains from a downside correction despite the overbought conditions
The dollar has steadied after the recent rally that took the prices to fresh twenty-year highs above the 107.00 figure. The USD index has settled marginally below this level on Thursday, refraining from a deeper correction despite the overbought conditions, which implies that the bulls are not out of the game just yet. Against this backdrop, EURUSD saw a major dip to 1.0160 on Wednesday, trying to regain the 1.0200 mark in early European deals today. Now, traders shift focus to the ECB’s June meeting minutes that could help the shares currency recover somewhat if the central bank strikes a more hawkish tone. Otherwise, the pair could see fresh multi-year lows in the near term. On the upside, the next resistance is expected at 1.0275, followed by the 1.0350 zone while the key near-term target for euro bulls arrives at 1.0450 where the descending 20-DMA lies.
GBPUSD plunged to March 2020 lows below 1.1900 on Wednesday. The pair has bounced marginally since then, holding in positive territory during the European hours. The cable was last seen changing hands around 1.1970, adding 0.36% on the day. Should the prices manage to regain the 1.2000 psychological level on a daily closing basis, the immediate selling pressure surrounding the British currency will ease marginally. However, the overall technical picture remains bearish, with downside risks persisting both in the shorter-term and weekly timeframes. On the positive side, the daily RSI has reversed north while on the hourly charts, the pair has climbed back above the 20-SMA, signaling some improvement in the immediate picture. Should GBPUSD stay below 1.2000 on a daily closing basis, the mentioned long-term lows could be challenged ahead of the weekend.
USDJPY briefly jumped to the 136.35 zone earlier in the week before trimming gains. On Wednesday, the dollar briefly dipped below the ascending 20-DMA but managed to finish in positive territory. Today, the greenback remains on the offensive, challenging the 136.00 mark after some hesitation during the Asian session. For now, the path of least resistance remains to the upside, especially as the daily RSI remains in neutral territory. Should the dollar come under pressure in the near term, the nearest support is expected at 135.50, followed by the mentioned moving average, today at 135.30. On the hourly charts, the pair is now back above the key moving averages, adding to an upbeat technical picture. As such, the downside potential looks limited, with the key near-term support arriving at 134.25. In a wider picture, the overall bullish trend remains intact while above at least the 120.00 mark last seen in March.
The bitcoin price has been relatively steady these days, with upside bias prevailing following the recent plunge to the $18,600 area. The BTCUSD pair came off local lows and has been oscillating around the $20,000 mark this week, struggling for direction within a strong bearish trend that persists since November. As the largest digital currency has steadied, market participants are wondering if the price has found a bottom already. For now, bitcoin is likely to stay in a consolidation phase before deciding on the further direction. The current range of $18,000-$22,000 could stay intact in the coming days. On the downside, the immediate support is expected at $19,300, followed by $18,700. Should these levels fail to withstand the pressure, the $14,000 mark will come into the market focus for the first time since November 2020. If the buying pressure reemerges, turning the $20,000 mark into support on sustained basis, BTCUSD will target the $23,000 level first.
Leave Your Opinion