The pair continues with its down trend since August 13’s peak. Last week correction resulted in a double top formation and aggressive fall to a new 8 month low. For now all the important moving averages are above the price action with a negative slop for the 10, 50 and 100 DMA which today are 0.8269, 0.8337 and 0.8384 respectively. We can expect further weakness from this pair with strong resistance around the moving averages and lower targets at 0.8152 and 0.8090.
|Support||1.3413 (200 DMA)||1.3295||1.3105|
|Resistance||1.3551 (100 DMA)||1.3622||1.3624 (50 DMA)|
Following the BOJ press conference, the JPY displayed a weak reaction during the Asian trading session. In the past two months the pair had been traded in a range between 92.26-94.16, and when the crucial moment arrived, and the pair was able to break it down on a strong JPY, the opportunity passed as this morning’s weakness gave way and pulled the price action back again to the well-known range area. Combine this point with some analysis on the daily chart we getting the understanding that this pair has some strong support area around 91.05 and 89.72. A complete move back to the range area (92.26-94.16) will trigger more buy pressure and a test of breaking the range to upside with targets at 95.12 and 96.03.
|Support||92.26 (pivot line)||91.05||89.72|
|Resistance||92.26 (pivot line)||94.16||95.12|