USDJPY tests resistance
The Japanese yen (JPY) tries to reclaim some lost ground after the pair takes a breather from the latest rally. Price action continues to struggle after moving over 300 pips in the past week. A break above the top of the recent rebound at 157.30 has further put the bears on the defensive. 156.50 is the immediate support, and its breach could expose 146.00, which is critical in maintaining the bullish bias. On the upside, 158.20 is the first level to lift to ease the pressure and drive the pair to fresh highs.
EURUSD seeks support
The euro remained under pressure as the Fed’s latest statement saw the dollar rally across the board. The price saw a brief lift as the 1.0300 level was in range for bears. However, profit-taking by short-term buyers has hampered the pair from regaining a foothold above 1.0450, which is the next resistance level. As the RSI moves into the overbought area, 1.0390 is a key level, and its breach could trigger a deeper correction below 1.0300.
SPX 500 striving for another record
The S&P holds onto gains as the latest Santa rally saw big tech stocks benefit. The index is grinding above the psychological level of 6000, which is a major crossroads as a breakout could signal a bullish continuation, namely putting the bull market back on track after the recent correction. In the short-term, 5920 is the closest support, and 5840 at the base of the recent bullish breakout is a critical level at which to expect trend followers.