The USDJPY grinds major resistance
The Yen extended losses as the dollar train advanced across the board. On the chart, the price is crawling back to its 4-month high of 155.25 as the bulls look to keep the momentum going. In the near term, the psychological level of 154.00 is a key resistance. A flash sell-off will force some buyers to bail out and a close below 153.00 would release the tension and send the pair to the bottom of the rally at 151.30.
AUDUSD drifts lower
The Australian dollar was another casualty of the greenback as price action looks to test the previous low at 0.6520. Sentiment remains weak after the bounce turned south at 0.6650, suggesting bears have been eager to sell into strength. The recent double bottom of 0.6540 is the buyers’ last line of defense and its breach would trigger a new round of liquidation and open the door to a multi-month low at 0.6420. On the upside, 0.6600 is the first resistance and only a break above 0.6680 would initiate a meaningful recovery.
UK 100 breaking support
The FTSE tumbled as the UK’s unemployment rate jumped more than expected. A steep drop below 8200 has forced the latest buyers to close their positions, denting the short-term bullish mood. As the RSI moves into the oversold area, 8050 is the next level to hold to see if buying interests would reemerge. On the flip side, a push above 8175 could see a turnaround to keep the index from sinking into a bearish reversal.
