July 11 2022
Technical analysis for USDJPY, EURUSD, & GBPUSD
USDJPY hit a new high for 2022 at 137.27, the highest since 1998!
With continued monetary policy divergence between Japan and the US, It is likely the dollar will push on and upwards.
The USD has found some resistance at 137.20/30, and has had a minor pullback to 136.80. However, as long as 136.40/20 support holds, further upside gains towards 138.00 will be seen after 137.20/30 is broken.
On the downside you should find strong support at 136.60/40. However, if this support breaks down, there is likely to be further losses to 135.80/60.
Fridays 100 pip bounce off the lows, gave the poor old EUR bulls some hope that a bottom was possibly in place.
This may be the case provided support holds at 1.0140/20. The Bulls need a sustained break of resistance at 1.0180/90, and an advance to 1.0220.
If the bullish targets are met at 1.0220 the next target will be 1.0280
However, a breakdown of support at 1.0120 would increase the downward pressure and signal a test of Friday’s lows and beyond, possibly sub parity.
Following on from another Failure on Friday to break and hold resistance at 1.2040, the Pound is probably going test the lower end of a 100 pip range at 1.1950/40.
If 1.1940 support is broken, it will allow for another test of the low around 1.1880/70.
However, if 1.1950/40 support holds, further upside probes of 1.2040 will be seen and if the resistance is broken the pound will make gins to 1.2080/90.
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