EUR/USD

The Euro bounced back from yesterday’s new low at 1.0452, after Trump’s news conference lacked more details about policies of new administration that disappointed dollar bulls.

Long-tailed yesterday’s daily candle underpinned fresh action higher today that probes again above daily Kijun-sen pivot at 1.0605.

We need to see daily close above the latter to signal bullish continuation. Lift above 1.0650/68 (30 Dec spike high / strong upside rejection and Fibo 61.8% of 1.0872/1.0393) is needed to confirm scenario and expose 1.0700 (round-figure) and 1.0746 (Fibo 76.4%).

Caution on repeated failure at Kijun-sen that would signal repeated upside rejection and extended sideways mode.

Cracked daily Kijun-sen now acts as initial support at 1.0605, ahead of 1.0565 (Fibo 38.2% of 1.0452/1.0641 bounce), loss of which would turn near-term focus lower and expose supports at 1.0524 (Fibo 61.8%) and 1.0490 lower pivot (daily Tenkan-sen).

Res: 1.0650; 1.0668; 1.0700; 1.0746
Sup: 1.0605; 1.0565; 1.0524; 1.0490

GBP/USD

Cable is maintaining strong near-term bullish tone and approaching yesterday’s high at 1.2270, posted after roller-coaster ride yesterday.

Pre-Trump strong bullish mode for dollar brought the price near key support at 1.2000, followed by strong bounce that cooled dollar bears and neutralized strong downside risk of attack at 1.2000 breakpoint.

Fresh rally took out upper pivots at 1.2200/33 (former low / daily Tenkan-sen) and is pressuring the next one at 1.2278 (Fibo 61.8% of 1.2428/1.2035 fall) to shift n/t focus higher on sustained break.

However, overall bearish structure keeps risk of recovery stall and fresh weakness.

Stronger hesitation at 1.2278 pivot would be seen as initial bearish signal, with return below daily Tenkan-sen, to increase downside risk.

Res: 1.2278; 1.2300; 1.2336; 1.2400
Sup: 1.2233; 1.2200; 1.2160; 1.2125

USDJPY

Strong reversal signal was generated on yesterday’s rejection of probe above daily Kijun-sen/Tenkan-sen pivots (115.87/116.41 respectively) that boosted today’s fresh bearish acceleration. Key support at 115.05 has been taken out and bears extended another hundred pips so far, hitting 114.00 (round-figure support). Double-top at 118.65/59 continues to weigh, providing strong downside pressure. Further bearish acceleration may stretch towards next good supports at 113.10/112.85 (08/05 Dec troughs). Daily close below 115.05 is needed to confirm strong bearish stance. Daily Kijun-sen at 115.87 marks the upper pivot and expected to cap extended upticks.

Res: 115.05; 115.49; 115.87; 116.41

Sup: 114.00; 113.40; 113.10; 112.85

 , Daily Market Outlook