USDJPY

The yen jumped across the board after BoJ’s governor Kuroda ruled out the use of monetary stimulus, known as ‘helicopter money’.
The dollar fell some 200 pips against yen, as immediate reaction on central bank chief’s comments, marking the strongest pullback of the rally from 100.00 trough so far.
Earlier today, the pair reached fresh 6-week high at 107.47, where gains were capped by descending daily Ichimoku cloud.
Near-term structure turned negative and sees risk of deeper pullback which was signaled by bearish divergence on overbought daily slow stochastic that now emerged from overbought territory and shows a plenty of room at the downside.
As initial support at 105.70 (Fibo 23.6% of 100.00/107.47 upleg) was taken out, with focus at next support at 105.25 (18 July low) and extension towards pivotal support at 104.61 (Fibo 38.2% retracement) not ruled out.
On the other side, oversold hourly conditions suggest corrective action, with initial obstacles at 105.70/90, followed by 106.20 (Fibo 38.2% of the latest fall from 107.47) and 106.60, where daily cloud base currently lies and which is expected to limited extended rallies.
Res: 105.90; 106.45; 106.70; 107.00
Sup: 105.40; 105.25; 105.00; 104.61

EURUSD

The Euro returned above 1.1000 handle, following yesterday’s unsuccessful attempt lower. Near-term price action is so far supported at 1.1000, but upside remains limited, with overall structure being firmly bearish and favoring further downside.
Session high at 1.1045 marks initial resistance, reinforced by falling 10SMA, followed by daily Tenkan-sen at 1.1071,with 20/200SMA’s Death Cross at 1.1090, confirming strong bearish stance.
Sustained break below 1.1000 is expected to open interim support at 1.0970 and open way towards key 1.0909 support (post-Brexit low).
Alternative scenario requires lift above 200SMA to sideline bears.
The pair is awaiting results from today’s ECB meeting, for fresh signals.

Res: 1.1045; 1.1071; 1.1090; 1.1125
Sup: 1.1000; 1.0970; 1.0930; 1.0909

, Daily Market Outlook