The heightened anxieties ahead of the heavily anticipated FOMC minutes have boosted appetite for the safe-haven Japanese Yen consequently triggering a heavy decline in the EURJPY during trading on Tuesday. Prices have sunk over 100 pips and with Yen bulls maintaining momentum amid risk aversion, the pair may be set to decline towards 125.00 in the near term. From a technical standpoint, prices are trading below the daily 20 SMA while the MACD has also crossed to the downside. Previous light support around 126.00 could transform into a dynamic resistance which may open a path towards 125.00 and potentially lower. A bullish move back above 127.00 suggests bearish weakness and invalidates this daily bearish outlook.
The GBPJPY experienced a colossal drop during trading on Tuesday as the explosive combination of Sterling vulnerability and Yen strength offered a foundation for bearish investors to attack prices. This is immensely bearish and the growing appetite for the safe-haven Japanese Yen amid risk aversion should offer bearish investors an opportunity to send prices towards 156.00. From a technical standpoint, prices are trading below the daily 20 SMA while the MACD has crossed to the downside. Previous support at 158.50 could transform into a dynamic resistance which should encourage a further decline to 156.00.
This pair remains under extreme pressure on the daily timeframe and Yen appreciation from the renewed risk aversion should encourage the USDJPY bears to send the USDJPY back down towards 110.00. The resistance just below 114.00 has provided a foundation for prices to decline back down towards 110.00. From a technical standpoint, prices are below the daily 50 SMA while the MACD is also trading lower. Previous support at 111.00 could become a dynamic resistance for a further decline towards 109.00.
A weakening Australian Dollar could be the driving force which has empowered the EURAUD bulls to break above the 1.500 resistance. This pair may be on the path to turning bullish on the daily timeframe as prices are trading above the daily 20 SMA while the previous lower high at 1.500 has also been breached. Previous resistance at 1.500 could turn into a dynamic support for another an appreciation to 1.520. A hefty decline back below 1.475 suggests bullish weakness and invalidates this daily bullish outlook.
Yen appreciation has turned the AUDJPY heavily bearish on the daily timeframe with prices slicing through the daily 20 SMA. As long as the previous 85.00 support acts as a dynamic resistance, prices may continue to decline towards 82.00 and potentially lower.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.