Will the EUR/JPY bounce or break from the 140.00 level?

The Euro fell today versus the Yen and it reached the 140.00 level. On its first visit to that round number and psychological level, the pair gave us a bounce of more than 40 pips, but it fell right back down to the 140.00 zone. This pair usually gives us a range of 40 to 50 pips when it bounces from the first visit to an important support/resistance area.

However, we may see a breakout of the 140.00 to the downside. In case we see a breakout, then we should wait patiently for confirmation of the breakout and then the pullback for a possible short entry. Below the 140.00 level, the next important support is the 139.00 zone from where we may see the price try to stall there.

All eyes on the current pullback of the GBP/USD to the 1.6900 level.

The Pound has been very volatile versus the Dollar for today, showing strength on occasions and making us believe that it was going to continue with its uptrend, but then it came back down as the Dollar started gaining ground versus most of the other major currencies. So far the GBP/USD has fallen close to the 1.6900 level, but it is still missing it by about 20 pips.

On the 4 hour chart below we can see the price heading towards the 1.6900 level, which should act as a good support zone, due to the fact that it was a good resistance in the past. Therefore, we must be attentive to a possible visit to the 1.6900 from where the price may bounce to the upside, especially if the 55 period Exponential Moving Average (purple line) is closer to the same zone. We can clearly see on the chart below that the 55 EMA has been supporting the price really good and that is why it could help stall the drop one more time on the next visit.

The EUR/USD pulls back towards the 1.3900 level.

Since the moment the Euro stalled its rally versus the Dollar, we have been expecting a possible retracement to the 1.3900 level. A visit to this level could give us a bounce to the upside, due to the fact that this same round number area has been a good resistance zone in the past and now that the price has broken it to the upside, it should become support.

Below the 1.3900 level we can see different levels of support on the 4 hour chart below, like the 55 and the 200 period exponential moving averages. Therefore, if we see that the price breaks below the 1.3900 level, it will be very difficult to decide where to go short, because the pair may come right back up from any of those support levels.

The Norwegian Krone holds on to its gains versus the Greenback.

The US Dollar has been weakening during today´s session versus most of the mayor currencies and it kept losing ground versus the Norwegian Krone, even though it has found a good support level at the moment. As we can see on the chart below, after the USD/NOK broke the 5.9600 level to the downside, this zone became a good resistance area and the pair has not been able to move above it.

Today we see that prices fall all the way to the 5.9100 level. At the moment the price is consolidating just above the 5.9100 level, but it has not shown intentions of a correction yet. Therefore, prices may head in any direction from here. If we see a breakdown of the 5.9100 level, then we should patiently wait for the pullback for a possible short entry. If for any reason prices retrace to the upside and visit the 5.9600 level again, then we may see a bounce from the zone to the downside; especially if the 55 Exponential Moving Average is around that area.

Possible visit of the USD/CAD to the 1.0900 support level.

The US Dollar stays consolidated versus the Canadian Dollar just below the 1.1000 level. We can clearly see on the daily chart below that the 1.1000 level has been a good resistance zone along with the 55 period Exponential Moving Average. There is a good probability of a bounce to the upside if the price visits the 1.0900 level, but first it would have to break the area of the 1.0950 where it is having difficulty to go lower.

More than a 30 pip bounce on the AUD/USD from the 0.9200 level.

The better than expected Non-Farm Payrolls report out of the U.S. and the unemployment rate have caused the AUD/USD to drop to the 0.9200 level as the dollar strengthens versus the other major currencies. We have been anticipating this move for quite some time now, and today it has visited that level, bouncing from it to the upside.

So far the bounce has produced a plus 30 pip move and it is heading towards the 200 period exponential moving average on the 4 hour chart as shown on the image below, courtesy of the Forex Broker Activtrades http://www.activtrades.co.uk/. This 200 period EMA (blue line) may stop the price there, because if this zone was a good support level in the past, now that it has been broken, it should act as a resistance. A second visit to the 0.9200 level could give us another bounce to the upside, but we must be aware that the probabilities of a breakdown on a second visit rise.

The Dollar versus the Yen stalls at the 102.00 level.

The round number and psychological level of the 102.00 on the USD/JPY has proven to be a very strong support area for this pair. Even though today the dollar tried to strengthen versus the yen, the price can still come back down and try to visit the 102.00 level again. We must keep in mind that to the upside we have a couple of factors that could prevent the price from going higher at the moment, but who knows what may happen tomorrow after the Non-Farm Payrolls report.

On the 4 hour chart below, we can see how the 55 period exponential moving average has been holding the price quite well. However, in order to see a definite breakdown of the 102.00 level, we would need to get a worse than expected reading on tomorrow’s NFP and unemployment rate reports out of the US. But if the readings come out in line or better than expected, then we could see a rally on the pair that could take it above these EMAs on the 4 hour chart.