USDJPY grinds lower
The Japanese yen (JPY) recovered some lost territory after moving away from the recent peak at 157.00. On the chart, the round number of 154.00 is an intermediate hurdle for bears to clear as the RSI shot into the oversold zone. Further down, 152.80 would be the bulls’ second layer of defence if the correction continues. Follow-up bids are expected at 154.50, which could give some bulls the advantage if there is a break at 155.00.
EURUSD struggles for support
The Euro attempted a fightback after weeks of pressure from the greenback. Despite a move above 1.0600, short-term failure from buyers to hold onto their gains reveals their weak commitment. The breach of 1.0600 would raise volatility and signal a bullish continuation, forcing sellers to liquidate. On the downside, 1.0520 is the first support to clear for dollar buyers as the pair retreats towards new lows.
NAS 100 falls from peak
The Nasdaq snapped back after sliding from its record peak last week. A limited bounce has met some selling pressure at 20600, and a subsequent reversal below 20250 would suggest that the sellers are still in the market. From the daily chart’s perspective, this means that the index could be in for a prolonged correction with the psychological level of 20000 as a potential target. The RSI’s oversold situation could cause a brief bounce to 20700 should sellers take some chips off the table.
