EURJPY continues to climb
The Japanese yen extended losses after the BoJ kept its key short-term interest rate unchanged. The latest surge has propelled the pair to a multi-decade high above 168.00, contributing to the yen collapse, which could keep the yen pressured for a prolonged period. With the RSI firmly overbought, the bulls could see a pullback opportunity. 167.20 is the closest support, with 166.00 as a second layer. A close above 168.50 would carry the momentum further.
GBPUSD seeks resistance
Cable remains in consolidation as traders await this week’s Fed decision. The latest horizontal move has managed to stay above the 20-day SMA and suggests that the bias remains bullish. A surge above the recent high of 1.2520 would resume the upward trajectory, making 1.2700 the next threshold. 1.2460 is a keen target for bears as the RSI develops a bearish divergence. 1.2400 is vital in keeping the momentum intact.
GER 40 clears resistance
The Dax continues the climb with upbeat PMI data from Germany and the Eurozone. A tentative break below 18000 caused some profit-taking but was insufficient to spook most buyers. A follow-up rebound has lifted bids to the recent top of 18110, prompting sellers to cover their positions ahead of a bullish continuation. 18300 is the next level to clear to break to the previous swing high. On the downside, 17800 is the first support.