8DC FX

USDJPY, EURUSD, GBPUSD Technical Analysis

August 11 2022

USDJPY

Headline US CPI for July, surprised the market by dropping to 8.5% from June’s 9.1%. This has the market wondering if the FOMC will start to scale back its aggressive rate hikes.

USDJPY is trading well above its overnight low. However, downside risk remain while USDJPY is below 133.80. This morning the next resistance is seen at 133.40.

Support for the USD will now be at 132.70, which if broken would allow another attempt at strong support in the 132.20/132.00 region.

EURUSD

The EURUSD tried and failed to break strong resistance at 1.0360. However, the EUR looks like it’s broken out of the recent range.

To maintain this upside momentum, the EURUSD needs to hold support at 1.0260/50.

A failure to hold this level would be a set back, that would allow for further losses to 1.0200 and possibly 1.0160.

On the upside there will be some resistance now at 1.0320/30, which if broken would signal another test of 1.0360 and possible 1.0410.

GBPUSD

Cable had a strong day yesterday. However resistance at 1.2270/80 remains in place.

If the GBPUSD is to keep its upside momentum support at 1.2180/60 needs to provide a base for further upside test of 1.2270/80 resistance.

If the support at 1.2160 breaks the next support is at 1.2120. Resistance is now going to be at 1. 2230 and then 1.2280.

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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