EURUSD

The Euro is showing initial signs of stall and reversal after repeated rejections under strong 1.0500 resistance zone.
Double Dojis that were formed in past two days signaled strong indecision of recovery leg from 1.0351 (20 Dec low).
Broken daily Tenkan-sen (currently at 1.0424), is holding today’s bearish acceleration for now and is marking the first downside trigger.
Break below Tenkan-sen needs to extend below 1.0400 zone (Fibo 61.8% of 1.0351/1.0498 recovery leg) to confirm reversal and look for return to 1.0351 low.
Near-term studies are negative, while daily technicals are returning into full bearish mode and support further downside.
However, consolidation above Tenkan-sen support could be anticipated on oversold hourly studies, with corrective upticks to ideally hold below 1.0460 zone, before fresh attempts lower.
Alternative scenario requires firm break above 1.0500 resistance zone, which may stretch towards next key resistance, daily Kijun-sen line (currently at 1.0611).
Res: 1.0445; 1.0460; 1.0479; 1.0498
Sup: 1.0424; 1.0400; 1.0385; 1.0351

GBPUSD

Today’s fresh acceleration lower is confirming lower platform at 1.2300 zone that proved to be strong near-term resistance.
Fresh weakness is signaling an end of three-day consolidation and further stretch of extended wave C of five-wave pattern from 1.2772 (06 Dec (peak).
Firm bearish tone on technical studies on all timeframes supports further easing.
The wave could travel to its 238.2% Fibonacci expansion at 1.2181 initially, with extension towards 1.2127 (FE 261.8%), being in play.
Upticks should be capped by thinning hourly cloud (spanned between 1.2260&1.2270), which guards more important 1.2300 resistance zone.
Only firm break here would signal extended correction towards 1.2365 (falling daily Tenkan-sen line).

Res: 1.2270; 1.2300; 1.2365; 1.2382
Sup: 1.2200; 1.2181; 1.2127; 1.2100

USDJPY
Fresh attempts higher from 117.00 zone, where higher base has formed, are reviving near-term bulls.
Recovery rally that is extending into second day is probing above daily Tenkan-sen line (currently at 117.59).
Close above here is needed to generate bullish signal for renewed attack at next pivot at 118.25 (bear-trendline, connecting Aug/Nov 2015 peaks), firm break of which would signal renewed attack at 118.65 (15 Dec peak) and resumption of broader bulls towards targets at 119.50 & 120.00 (Fibo 76.4% of 125.84/98.98 descend/psychological barrier).
Caution on overbought daily studies, as repeated failure at trendline resistance would signal further consolidation under 118.65 high and keep the downside at risk.

Res: 117.85; 118.25; 118.65; 119.50
Sup: 117.35; 117.00; 116.53; 116.24

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