USDJPY could challenge the 135.00 figure should the upside momentum persist
The USD index retains a modest bullish tone after yesterday’s rally towards the 107.00 figure that triggered some profit-taking eventually. The greenback has settled around 106.50 since then, trading around the flat-line on Wednesday. The FOMC meeting minutes will set the tone for the buck in the short term, with bulls betting on a hawkish tone from the Fed despite the slowing inflation. In a wider picture, the US currency remains within a broader bullish trend, albeit holding off multi-year tops seen last month above 109.00. EURUSD stays below the 20-DMA, struggling to regain the 1.0200 figure after the recent rejection from the 1.0370 zone. Should the shared currency fail to hold above 1.0100, the selling pressure will intensify in the near term. On the downside, a major support arrives at 101.30, followed by the 100.00 psychological level last seen in April.
GBPUSD dipped to two-week lows around 1.2000 on Tuesday before bouncing back into positive territory. The pair extended its recovery to 1.2143 earlier in the day, but failed to preserve gains and slipped back to the 20-DMA that remains in the market focus at this stage. The pound was last seen changing hands around 1.2110, up 0.15% on the day. A failure to hold above this intermediate barrier would pave the way towards the 1.2000 zone that helped cap losses earlier this month. On the four-hour charts, the downside momentum has eased after the recent break above the key moving averages. Adding to a more upbeat tone, the daily RSI turned slightly higher in neutral territory, suggesting the cable could see some fresh recovery attempts in the near term. On the longer-term timeframes, the technical picture stays bearish, with the prices holding below the key weekly SMAs while the RSI turns slightly lower.
The dollar regained a solid bullish bias on Tuesday after flat close at the start of the week, extending the ascent today. The pair advanced to 134.90 and was last seen clinging to the upper end of the extended trading range, up 0.46% on the day. In the process, the dollar exceeded the 20-DMA for the first time since late-July. Earlier in the month, the prices managed to hold above the 100-SMA, suggesting the pair stays resilient. In the near term, USDJPY could challenge the 135.00 figure should the bullish momentum persist. A decisive break above the mentioned moving average on a daily closing basis would bring long-term highs above 139.00 back into the market focus. In case of a downside correction, the nearest support should be expected around 134.20, followed by 133.90.
The Aussie has been pressured since the start of the week. The pair peaked around 0.7135, just below the directionless 200-DMA, before losing the upside momentum. As a result, AUDUSD slipped below the key SMAs to extend losses towards the 0.6960 zone that has been capping losses so far. A failure to hold above this region would add to the selling pressure surrounding the Australian currency in the near term. The next support zone for the pair arrives around 0.6900. Adding to a downbeat technical picture, the daily RSI keeps pointing south in neutral territory, which implies that the pair could further lose ground amid a stronger dollar. On the upside, the immediate resistance now arrives at 0.7025, followed by the 100-DMA, currently at 0.7067. On the longer-term timeframes, the pair fell back below the descending 20-week SMA after failure to overcome the 200-week SMA.