EUR/USD stabilises while EUR/JPY, USD/JPY rally

EUR/USD last week turned medium-term bearish

Friday's EUR/USD fall through and daily chart close below its $1.0694 February low confirmed the resumption of the medium-term bear market which began in December with the $1.05 region being in focus.

A slip through Friday's $1.0623 low would likely engage late October lows at $1.0522 to $1.0517 which represent the next downside targets ahead of the $1.0449 October trough. Short-term a minor bounce back towards the major previous $1.0695 to $1.074 support zone, now because of inverse polarity a resistance zone, may ensue but it is expected to cap.

EUR/JPY resumes its ascent

EUR/JPY's swift reversal to the upside on Monday morning makes us question Friday's toppish outlook which we'll put on the back burner unless a fall through last week's low at ¥162.28 were to be seen.

Only in this scenario would the January high at ¥161.87 be back in sight. The 10 April low at ¥163.91 represents the next upside target ahead of the key ¥165.17 to ¥165.35 March and current April highs.

USD/JPY trades in new 34-year highs

USD/JPY's rise above its ¥153.60 July 1987 peak puts the ¥154.00 mark on the map, above which beckons the ¥155.00 region.

Immediate upside pressure will remain in play while Friday's low at ¥152.60 underpins. Were this level to give way, however, the the ¥151.97-91 area might be eyed. Further down sits the ¥150.88-81 support zone.