The EUR/USD pair has risen to the range highs at 1.3375 and is currently consolidating at that area with the possibility of a break higher - initially reaching the weekly pivot at 1.3422 and then perhaps the upper channel line at 1.3475, where the monthly pivot is situated too. However, given the divergence with momentum and the resistance highs my preference is for a fall back down to 1.3305 at the lower channel line of the rally.
GBP/USD: meeting resistance
The GBP/USD pair has broken above the 1.600 level and has rallied up to a resistance just above 1.6050 from the upper channel line of the rally which began on Mar 13. This should resist further gains and the exchange rate will probably fall from here to support from the lower line of the same channel at 1.5960 where the weekly pivot would also be expected to provide support as well.
USD/JPY: technical analysis
81.80/85 support held back the price from further decline and cancelled, may be just for a while, earlier forecasts, expecting further correction towards 80.60, 79.90/80 levels. The price recommenced its growth and, having reached 83.40 level is now declining. At the moment it resides at 82.80/90 level. Indicators have changed their reading and are now suggesting stronger bullish sentiment. Therefore, it's worth expecting current decline to halt at 82.50/60 support and growth to recommence. The first strong resistance on the way up will be found at 84.15/20 local maximum. At the same time, should the price breach 82.50/60 level, we'll be expecting stronger bearish sentiment and a possible reversal towards 81.80/90 level. In this case the price will be most likely moving sideways within 83.40 – 81.90/80 range with risks to fall towards the above mentioned 80.60, 79.90/80 targets.
Analysis prepared by:
Joaquin Monfort and Arkady Nagiev