USDJPY drops from peak
The Yen (USDJPY) took a step back from its monthly rally as prices hit a firm rejection just above the 160.00 zone.
- A bearish RSI divergence shows a slowdown in buying momentum.
- Most buyers need more assurance of sustainability after the recent drop.
- Some short covering could lift the pair to the psychological level of 160.00.
- 159.40 is a fresh support, and 158.60 is a key floor to prevent a full reversal.
EURAUD beginning to pick up
The Australian dollar took a step backwards as the Euro jumped over 50 pips.
- On the chart, the bias is in favour to the upside after prices broke above 1.6200.
- The previous sell-off forced leveraged buyers to bail out, but as the tide turns, the current upshift would remain valid.
- The RSI’s jump could attract more bargain hunters as the price tests this demand zone.
- The next hurdle is at 1.6250, to prevent a drop back towards 1.6130.
UK 100 hitting lower lows
The FTSE looks for a lift as price action hit another lower low.
- After flirting with multi-month highs towards 10700, confirmed sellers have made their way back.
- 10820 is the level higher, and its break will signal a broader move higher.
- A test at the recent peak at 10900 will decide if any potential comeback will materialise.
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