So far today we have a particularly strong Japanese yen and weak euro and sterling. The EURJPY looks very oversold on the short term 1 hr and 4 hr charts but the Daily chart suggest this pair could still fall further from here. On the daily chart the pair broke the important 200 day moving average on Monday and has been trading below this key level (120.00) all week. Next support would be around the 118.25- 118.00 zone with the 120.00 area now resistance to a move higher. The oversold situation in the 1 hr and 4 hour charts suggest a LONG position on these shorter time frames from the break of the lower Bollinger band. An entry was taken at 118.75 with target 1 on the 1 hour chart at the 14 ATR at 118.95 and target 2 on the 4hr chart at 119.05.
Elsewhere the key USD pairs are both flirting with key psychological levels as we await the North American session and the release of the FOMC minute later today. EURUSD is struggling to stay north of 1.0500 and USDJPY is struggling to stay north of 113.00, different pressures but both at important levels.
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