Daily Forex Technical Trend Bias Key Levels Tues 09 Jul

• Dropped lower as expected and tested the major support of 1.2500 (the ascending trendline in place since Oct 2016 low) before it traded sideways in a tight range of 66 pips. No clear signs of bearish exhaustion; maintain bearish bias with a tightened key short-term pivotal resistance now at 1.2590 for a further potential push down to target the next near-term support at 1.2370 in the first step.
• On the other hand, a clearance with an hourly close above 1.2590 negates the bearish tone for a squeeze up towards 1.2705 (descending channel resistance from 03 May 2019 high).

USD/JPY – Mix elements, watch key resistance at 109.00

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• Broke above the tightened 108.15 key short-term resistance as per highlighted in our previous report and squeezed up towards the key medium-term resistance at 108.90/109.00 (also the former primary ascending support from Jun 2016 low).
• Mix elements now, prefer to turn neutral between 109.00 and 108.25. An hourly close below 108.25 revives the short-term bears. On the flipside, a daily close above 109.00 sees a further recovery towards the next resistance at 109.90.

click to enlarge chart

• Drifted down lower as expected and hit the first short-term target/support of 0.6955 as per highlighted in our previous report. Maintain bearish bias with a tightened key short-term resistance now at 0.7000 for a further potential push down to target the next near-term support at 0.6900.
• On the other hand, a clearance with an hourly close above 0.7000 negates the bearish tone for a squeeze up to retest the medium-term resistance at 0.7040/50.

Charts are from eSignal