The USDJPY has experienced an aggressive selloff since the sharp break below the 122.20 support on the 9th of December 2015. Despite the renewed appetite for the Dollar following the Federal Reserve’s decision to raise US rates on the 16th of December, the technicals around the USDJPY point to the downside and the recent breakdown below the dynamic 120.50 support has encouraged a further decline towards 118.50 as of writing. Prices are currently trading below both the daily 20 and 200 SMA, while the MACD is also deep into the downside. If the identified bearish channel is respected and bears attain a solid daily close below 118.50, then there may be a potential for a steep drop towards 117.00. It must be taken into consideration that 118.50 has acted as a strong support on numerous occasions in 2015, so a bounce may be expected from this level before the pending break towards 117.00.
The 0.6850 resistance on the NZDUSD has proved its resilience on numerous occasions ultimately preventing bulls from trading higher to the next checkpoint. This pair is on route to turning bearish on the daily timeframe as prices are consistently printing lower lows and lower highs. While the candlesticks are currently trading below both the daily 20 and 200 SMA, the MACD still trades to the upside which suggests that some bulls still linger. A solid breakdown and daily close below 0.6600 may offer the opportunity for sellers to send the NZDUSD to the next relevant support based at 0.6450.
The EURJPY is very bearish on the daily timeframe and the breakdown below 129.50 on Monday simply encouraged sellers to send prices towards the next relevant support at 127.00. There have been consistently lower lows and lower highs, while the MACD has sunk deep into the downside. A breakdown below 127.00 should provide the foundation for bears to drag prices lower towards 125.00. A bullish move back above 129.50 suggests bearish weakness and invalidates this daily bearish outlook on the EURJPY.
The EURCHF has been in a wide range for an extended period since August 2015. Currently, there is a layer of resistance around 1.0900 while support can be found near 1.075. A breakdown below 1.075 may open a path to the next relevant support based at 1.0700. Technical indicators such as the moving averages and MACD illustrate weak and mixed signals, and because of this, it may be best to observe until a break is achieved.
The CADJPY is technically bearish on the daily timeframe as there have been consistently lower lows and lower highs. Prices are trading below the daily 20 SMA and the MACD has crossed to the downside. A breakdown below 85.00 may invite an opportunity for a further decline towards 82.00.
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