The pair continues a strong up trend and is touching its highs which haven't been seen since September 2009. Traded in a narrow range during last month, the USD has now strengthen and broke the 1.0717 resistance line with strong RSI that jumped from 55 to 68 in one week. This aggressive move in the RSI could suggest an overbought situation in which experts expect some correction to 1.077 (50% from the move up) and lower to 1.0717 support line. After the RSI will settle down the next targets are 1.1278 and 1.15.
Since the beginning of the year the JPY steadily builds a strong correction pattern. After traded above the 10 DAYS M/A for more than two month it broke it, and is now trading below it for over a week. Below the 10 DMA it will find support at the 50 DMA around 140.17 and 138.98 support line. However, any intention to move up endures a strong resistance at the 10 DMA (142.3 for today) and only a close above it will confirm the returns of the impulse uptrend.
|Support||140.17 (50 DMA)||138.98||137.22 (100 DMA)|
The weekly charts reveal the crude oil weak condition, ready for the oldest support area from last year or even lower than that. On the last trading week of 2013 the market retreated all of its December’s gains and turned the technical picture from bullish to significantly bearish. This reversal price action had been driven by unexpected bearish fundamental news that resulted in the cross of all the moving averages to the down side. Today the crude oil price struggles to hold above the important 91.81, a close below it will trigger lower targets around 87.5 and 85.21. To the upside there are the moving averages around 93.56 (10 DMA) and 94.25 (14 DMA).
|Resistance||93.56 (10 DMA)||94.25 (14 DMA)||100|