EUR/USD: Bearish Potential
Eurodollar has fallen back down making new lows. Importantly it has reached the 200-day MA and is consolidating at that level. We still don't have a decisive break below and would require a move under the monthly pivot at 1.2815 to support the bearish case. Currently it looks like a flag pattern could be forming on the 4hr chart with a downside target at 1.2650. More upside seems unlikely, however, with a clear break above 1.2900 required, with a target at the support and resistance at 1.2955.
The USD/JPY is consolidating within a tight range after falling and resting on substantial support from a trend-line at 93.70. Above lies a long-term support line at 94.55 which is pushing the pair down so that effectively it is sandwiched now in a tight range between these two levels. The low volatility is no doubt due to traders waiting to see the outcome for the April 4th BOJ meeting, which is the first meeting for the new governor. A decisive break above 94.55 would target 96.00; a break below 94.15 could reach 92.00.
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