USDJPY test support

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The Japanese yen inched lower as January’s inflation missed expectations. On the daily chart, a bullish MA cross and a close above this year’s high of 134.40 indicate that sentiment could be turning around in the medium term. Zooming in, the pair may continue to enjoy the bullish ride as long as traders buy pullbacks. 133.90 is fresh support and 133.00 near the 20-day SMA would be the bulls’ second line of defense. A close above 135.30 would resume the rally with the former support of 136.00 as a potential target.
 

EURGBP attempts to bounce

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The pound holds on to its latest gains in the wake of hawkish BoE comments. A sharp drop below 0.8810 has invalidated the previous bounce, putting the bulls on the defensive. The daily support of 0.8770 coincides with the base of the breakout rally at the end of January, making it the bulls’ last stronghold. A bearish breakout could pave the way for a reversal below 0.8730. The RSI’s oversold condition attracted some bids and 0.8830 is the first hurdle. 0.8890 is the obstacle to clear before a recovery could materialize.
 

SPX 500 seeks support

The S&P 500 struggles as investors temper their Fed pivot hope amid solid economic data. A break below the previous swing low of 4050 has forced leveraged buyers to exit, turning it into a resistance. Even the psychological level of 4000 has failed to contain the sell-off, which suggests a strong bearish pressure in the short-term. Still, from the daily chart’s perspective, the index has been probing support after closing above last December’s high of 4130. 3950 is the next level to see if buying interests would make their way back.

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