The week is off and running. What are the technicals saying for the 3 major currency pairs - the EURUSD, USDJPY and GBPUSD?
EURUSD: The EURUSD is trading in a narrow up-and-down range. The pair moved up to test this 100 hour moving average at 1.0779 and found willing sellers. The price is also trading above and below its 100-day moving average of 1.07599. Both those moving averages will be instrumental in determining the short-term bias as we start the trading week.
USDJPY: The USDJPY continues its run to the upside as sources debunk the BOJ Ueda's comments regarding ending expansionary policy sooner than expected. The USDJPY price is back above its 38.2% retracement of the move down from the November high. That level comes in at 145.559. The 50% midpoint of the same move lower comes in at 146.770 and would be the next key upside target. It would take a move above that level to open a door for a run toward its 100-day moving average of 147.52. That would be a tough nut to crack on upside momentum. On the downside, move below the 38.2% at 145.559 would open the door for further downside probing with a target near 144.40 – 54. IT would also put more control in the sellers.
GBPUSD: Unlike the EURUSD which found willing sellers against its 100-hour moving average, the GBPUSD traders took the price above that moving average level but found sellers against a swing area between 1.25892 and 1.2602. The price is back below that hour moving average tilting the short-term bias pack in the direction of the sellers. Nevertheless, going forward getting above the swing area up to 1.2602 is needed to increase the bullish bias. On the downside, a swing area between 1.2558 and 1.25679 is the next downside target that if broken would increase a bearish bias. A break would next target the 38.2% retracement of the move up from the November 10 low. The level comes in at 1.2524.