EUR/USD tested the lower bound of a descending channel drawn from August 2015 at 1.0350/1.03, which corresponds to a projection for the down move. Indeed, it pierced below the lower part of the broad consolidation zone and March 2015 lows (1.0465) but failed to remain at that level with several weekly closes.
Short term, the pair is evolving within a double bottom and a rebound towards a steeper channel near 1.0665 is likely.However, EUR/USD needs to move beyond multi-month graphical levels of 1.0860 to affirm a sustainable recovery.
After a swift rise, USD/JPY has come up against a multi-month descending resistance at 118.70/119.50, also the 76.4% retracement from 2015 highs.
The pair is forming a double top showing signs of a pullback near term. An initial retracement looks plausible towards 114.70/114, the 23.6% retracement from last November. This will determine whether there is a deeper correction. 118.70/119.50 remains an important hurdle while the decadal trend at 123/125 will be a pivotal level long term.
Copyright © 2017 Societe Generale, eFXnews™Original Article
