EURUSD Support areas include 1.2675, 1.2650, 1.2600 followed by a key support at 1.2550. Resistance levels above are at 1.2700, 1.2800, 1.2900 1.2959, 1.30 figure level, followed by 1.3165.
The GBPUSD has been under pressure this morning declining to 1.6210 before recovering and posting a high of 1.6261 in early trading. The pair has not held above the key 1.6275 area identified in last week's report after capitulating on Friday. We noted: “If the price holds above 1.6275 area there is an increased possibility that the recent pound strength will continue. The pair has been in a wide range between 1.6060-1.6520 recently. A break below 1.6265 and then a move below 1.6150 will make the picture uglier for the GBP, after which lies the 1.6000 support. A move above 1.6520 will create a bullish impetus and bias. No Economic Data from the UK, this week has been short on UK economic data." The break of 1.6275 changes the bias with a greater chance of a downside in the GBPUSD than while holding above 1.6275. Coming up today in the GBP we have several economic data points being released with Net Lending to Individual m/m, M4 Money Supply m/m and Mortgage Approvals.
GBPUSD support areas include 1.6250, 1.6200, 1.6150, 1.6100, 1.6000, 1.5900, and 1.5850. Resistance levels and upside targets at 1.6300 1.6365 and 1.6500, 1.6600, 1.6750.
The USDJPY has broken a new high this morning. The pair has taken out the 109.46 6 year high that held all week reaching as high as 109.74. After making the new high we had some selling and the pair dipped to 109.50 before recovering to trade back at 109.65 at this time. On the M15 chart can be seen a strong upward channel/trend from 109.00 up to the new high of 109.74. A break below 109.25 would be an early indication of a possible short or medium term correction. If the pair corrects it very well could be a deep correction, although it is impossible to predict where the high will be before this correction. I see a strong correction due to the fact the pair is now up 10% in less than 2 months, the sticky part is predicting where. We are now at 109.64 the correction could begin here or at 111 or 112 or even higher. If the trade timing is not right then trade will not be successful. There was no economic data out of Japan overnight. Tuesday 02:30 (GMT+3) we have a slew of Japanese economic data with the Unemployment Rate and the Retail Sales figures being the most critical to keep an eye on.
Support levels for USDJPY can be seen at 109.46, 109, 108.39, and 107.50. Resistance to the upside at 110, 111, 112, 113.