EURJPY climbing higher at early Asian trading retracing all of the losses made yesterday. Weekly high posted on Tuesday is at 133.47. The pair is currently trading at the 76.4 fib levels of the decline set from Weekly highs to yesterday lows. Current levels 133.00 could offer some resistance to the pair, with a break above exposing weekly highs at 133.47, followed by 133.91. Alternatively a break below 132.60 is needed to extend declines targeting 132.11 next. Daily is to the upside as long as we are above 132.60.
SP500 closing lower yesterday, forming an outside day. This may be indicative of a bearish continuation sentiment. In recent reviews we mentioned that price is action is forming an ascending triangle and those we might be in the middle of wave E. the index is approaching towards the target area. A daily close above 1700 would negate the outllok and require reassessment of price action.
The USDCHF is trading at yearly lows. Current levels of 0.9000 performed as support in several occasions before and earlier this year on January. A daily close below those levels could extend decline towards 0.8920 next, followed 0.8870. The Pair came off more than 750 PIPS from July highs posted at July 9th. A move above yesterday high at 0.9076 is needed to relief downside pressure. A move above 0.9138 could initiate a deeper retracement in the pair.