As we wrote on our first live market update this morning, last Friday was a game changer for the forex market in the short term. FED´s Yellen made a comment, the market took it at face value and ran away with it. The major forex pairs made some 150-200 pip moves, all in favour of the USD. That drove the price away from the old support and resistance levels and brought into play new levels, so let´s have a look at these new levels today.
USD/JPY – The price was hanging around the 100 level last Friday with an eye on the downside, which was induced from the Japanese side. So, 100 stands at the bottom as the ultimate support level. Above that comes 101, 101.50, and 101.80. But, the US side of this forex pair stepped in and sent the price surging about 200 pips higher, which moved the resistance levels higher. Today they come at 102.50, 102.80 where the 50 moving average is residing at the moment on the daily forex chart and 103.80 which is where the 200 moving average stands on the H4 forex chart.
Forgotten resistance levels have come into play today
EUR/USD – This forex pair failed to break above the 1.14 level last week, which remains the top resistance level for now. Below that comes 1.1350-60 which was the high last week, 1.1230s where the 200 moving average stands and 1.12 which has been the high so far today. The low so far today at 1.1170 is the first support level. 1.1150 will come into play if 1.170 gets smoked, which seems like a matter of time to me, then 1.11 and finally 1.1050.