USDJPY advanced to one-month highs around 137.70 earlier in the day before retreating marginally
The US dollar rallied above 109.00 on Monday to extend the ascent to the 109.30 zone earlier today before retreating marginally amid some profit-taking. As a reminder, this region capped demand last month to trigger a solid bearish correction. Should the USD index overcome the barrier this time, the 100.00 psychological level will come into the market focus next. EURUSD extended losses to fresh multi-year lows around 0.9900 before bouncing partially amid oversold conditions. The pair was last seen changing hands around 0.9928, down 0.14% on the day. On the four-hour charts, the RSI remains in oversold territory while the prices stay well below the key SMAs, painting a bearish short-term technical picture. Now, the euro needs to regain the 1.00 mark shrug off some of the selling pressure at this stage.
GBPUSD stays on the defensive for the fifth session in a row on Tuesday as the greenback keeps trending north these days. Earlier in the day, the cable dipped to 1.717 for the first time since March 2020 before bouncing in recent trading. The pair rebounded towards 1.1770, staying below the 1.1800 mark that represents the immediate upside target. The pound was last seen changing hands around 1.1768, up less than 0.1% on the day. As such, the recovery potential looks limited at this stage, especially as the pair keeps distancing itself from the 20-DMA, today at 1.2075. On the four-hour charts, the bearish momentum persists even as the RSI remains in oversold territory, suggesting the path of least resistance remains to the downside for the time being. On the longer-term timeframes, the technical picture stays bearish as well, with the prices holding below the key weekly SMAs while the RSI keeps pointing lower.
USDJPY advanced to one-month highs around 137.70 earlier in the day before retreating marginally amid some profit-taking. Still, the dollar continues to cling to the upper end of the extended trading range, holding well above the 20-DMA, today at 134.50. Earlier in the month, the prices managed to hold above the 100-SMA, adding to a resilient technical picture. In the near term, USDJPY needs to confirm the recent break above 137.50 for the bullish momentum to persist. A decisive break above the mentioned highs 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 137.00, followed by 136.70 and the 136.00 figure. As of writing, the greenback was changing hands just below 137.24, down 0.16% on the day.
The Aussie has been retaining bullish bias since the start of the week, albeit holding close to the lower end of the extended trading range. The pair dipped to one-month lows around 0.6855 earlier in the day before bouncing into positive territory as the US dollar retreated somehow across the board. AUDUSD stays below the key daily SMAs and could come under renewed selling pressure after a brief relief rally. A failure to regain the 0.7000 mark in the coming days would confirm a bearish picture surrounding the Australian currency. The next support zone for the pair arrives around 0.6840. The daily RSI, meanwhile, looks directionless in neutral territory, which implies that the pair could struggle for direction in the immediate term. On the upside, the nearest resistance now arrives at 0.6900, followed by 0.6930.