Technical Analysis USDJPY, EURUSD, & GBPUSD
July 15 2022
USDJPY recorded another 20 year high at 139.38 yesterday.
Although the dollar has so far failed to break 139.40 resistance, It just seems to be a matter of time, before the dollar rally moves on and up. Breaking resistance and heading towards the psychological level of 140.00.
Support is now found at 138.60, which even if broken would only relive the upside pressure temporarily. The second level of support is at 138.20.
If and when, the Dollar breaks 140 the rumour mill about intervention will start again. However, Japans Ministry of Finance knows full well from past experience, that intervention can be a waste of time and money.
Particularly now, as the monetary policies of the BOJ and FOMC are at polar opposites.
The EURUSD has its long awaited trip below parity yesterday, however as it was hardly unexpected. Since making a low at 0.9952, the single currency has bounced back reasonably well.
While the upside momentum may not last long, it does have the potential for the EURUSD to move up to 1.0060/70 resistance and possibly 1.0110/20.
Support will be found at 1.0000/0.9990, which if broken would see the sellers take control again, and re-visit the 0.9960/50 level at the very least.
The relief rally from the 1.1760 lows needs to break resistance at 1.1860/80. Above 1.1880 would see the GBP advance further to 1.1920/40.
However, failure to overcome the 1.1880 resistance would cause the GBP’s upside momentum to stall, and come under renewed selling pressure. The GBP would fall first to 1.1800 support, which if broken would allow further losses to the 1.1760 low.
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