Always important to check in on the four primary currencies at the start of a new trading week and all on the daily timeframe.

First is the JPYX which has been rising fast during much of August, but which has now reached a congestion phase with a bearish engulfing candle last week and a floor of support building at 9067. If this level is breached we are likely to see the yen weaken and retest the support immediately below in the 9050 area with a longer-term trend lower thereafter.  Much will, of course, depend on risk sentiment & whether the recent move higher in equities can be maintained.

Moving to the US dollar, the sustained rally of late July and early August has now come to an end with congestion now building in the 12,440 to 12,380 albeit with a bullish tone, and any breach of the 12420 area will then see the highs of 12440 retested.

The euro continues to swing wildly from bullish to bearish, and at present is in a downwards phase of price action and heading back towards 127.80.

Finally, to the British pound whose extended bearish trend is now reaching a pause point with a minor bounce from 108.50 to currently trade above 110. However, the longer-term bearish trend remains for the time being.