Intraday Analysis - Thursday, Sept. 3

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.