EUR/USD: consolidating above trend-line
The eurodollar pair is consolidating just above a major trend-line. Although it temporarily broke higher on Friday it failed to follow through and has instead continued trading sideways. If it remains above the trend-line it will probably eventually breakout higher and full-fill its upside target initially by reaching 1.3508 and then eventually probably 1.3950. A re-break above the 1.3409 highs could provide confirmation of such a move. It is possible the pair could break back down, and a move below the 1.3298 spike lows could signal a reversal of the short-term trend to bearish with a target at around 1.3165.
USD/JPY: Meeting tough resistance
The USD/JPY has continued rising to resistance from two trend-lines – a down-sloping line and the underside of a bullish trend-line at 99.20 - and from there has pulled-back down to support from the 50-day MA at 98.50. Given the tough resistance from these two trend-lines situated above price it the probabilities favour a fall back down to below 98.30 giving confirmation of a continuation lower, perhaps to 97.74 initially. On the other hand a strong surge higher, above the 99.14 highs would be a very bullish sign and see the pair break higher with an upside target of 100.35 where the R1 monthly pivot is situated.
Analysis By: Joaquin Monfort, Forex4you Analyst
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