Source: Visual Chart
After the recent break of support at 1.3420, there is no reason why investors should not continue to sell on bounces as the EZ crisis deepens. Short-covering should not be ruled out although odds for that to happen have diminished after the mentioned break lower. Approaches at 1.3400 up to 1.3420, 50% fib retrac from yesterday's decline, should meet a great deal of selling interest. Lose of 1.3300 price zone, seen before the European open, had no follow through so far, yet lower levels remain in focus, with a test of the 1.3230 or even 1.3200 before the end of the week still in the cards.
Support levels: 1.3298/3300 1.3270 1.3230
Resistance levels: 1.3365 1.3690 1.3440
Source: Visual Chart
Sterling has been consolidating major losses below 1.5500 psychological level. The upside has been limited by mentioned resistance as bearish momentum remains intact. A potential retest of 1.5330 looms near. As long as below 1.5570, next downside target sees 1.5400 threatened ahead of more losses next week.
Support levels: 1.5440 1.5400 1.5350
Resistance levels: 1.5580 1.5590 1.5610
Source: Visual Chart
USD/JPY flied as high as 77.53 through the first hours of Tokyo trade on a combination of worsen deflationary pressures in Japan and sharper rhetoric from Japanese FinMin Azumi, ready to order further intervention. After unable to sustain gains at session highs, the pair faces next level of support at 77.20 (swing high in past Europe session), ahead of psychological 77.00. On the upside, bounces are expected to remain limited by today's high, as the supply in that vicinity continues to overwhelm buyers.
Support levels: 77.10 76.75 76.50
Resistance levels: 77.50 77.75 78.05
Source: Visual Chart
A short term correction appears to have completed as price is pressing against recent highs once again. Gains are likely to accelerate on a break of 0.9230 resistance, which would pave the way for the next target to the upside at 0.9340. Downside is seen limited by yesterday' s low at 0.9150, ahead of last Friday's low at 0.9080, and only below should shift focus toward round number 0.9000.
Support levels: 0.9200 0.9180 0.9150
Resistance levels: 0.9230 0.9300 0.9350
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