USDJPY hits resistance
The US dollar retreats as traders put faith in a softer labour market after a higher jobless rate. The price has clawed back some of the losses from last week’s liquidation and a close above the immediate resistance of 149.30 suggests that the buy side is still trying to stay in the game. However, the psychological tag of 150.00 is a major obstacle to lift before the bulls could advance unhindered again. A fall below 148.30 along the dynamic support of the 20-day SMA would expose the long lower wick at 147.40 from the latest sell-off.
EURGBP seeks support
The euro softens as a jump in Italy’s yield spreads raise the fragmentation risk amid renewed debt fears. The pair is still consolidating its gains in the vicinity of the 20-day SMA and above the key support of 0.8630. A bearish breakout could force buyers to bail out and trigger a liquidation towards 0.8570, putting the September rally at risk. On the upside, offers around 0.8670 would be the first to go before a bounce could catch attention. A close back above the recent peak of 0.8700 would resume the climb towards 0.8800.
GER 40 grinds demand area
The Dax 40 struggles over geopolitical complications in the Middle East. The index is still trying to hold onto the demand zone 14900-15000 as a drop below this critical daily chart level could shift sentiment to the pessimistic side in the medium-term and trigger a deeper correction to a 9-month low at 14400. A former brief support at 15320 is the first obstacle to clear to ease the downward pressure. Only a rally above the major support-turned-resistance of 15550 from the daily chart could initiate a meaningful bounce.