EURJPY Price Analysis: Next on the upside emerges 147.00

• EURJPY adds to Monday’s uptick and surpasses 145.00.
• The recovery faces the next hurdle at the 147.00 zone.

EURJPY extends the auspicious start of the week and reclaims the area above the 145.00 barrier on Tuesday.

If the corrective bounce gathers extra steam, then the cross should face initial resistance at the so far November high at 147.11 (November 9). The surpass of this level could open the door to a more meaningful move to the 2022 peak at 148.40 (October 21).

In the longer run, while above the key 200-day SMA at 138.21, the constructive outlook is expected to remain unchanged.

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Silver Price Analysis: XAGUSD holds steady above mid-$21.00s, around 200 DMA pivotal point

• Silver reverses an intraday dip to the $21.30 area, though lacks follow-through buying.
• Repeated failures to capitalize on the move beyond 200 DMA warrants caution for bulls.
• A convincing break below the $21.00 mark will shift the bias in favour of bearish traders.

Silver attracts some dip-buying near the $21.30 region on Monday and hits a fresh daily peak during the first half of the European session. The white metal is currently placed around the $21.65-$21.70 area, though remains below a five-month high touched on Friday.

Looking at the broader picture, the XAGUSD, so far, has been struggling to capitalize on its positive move beyond the very important 200-day SMA. This makes it prudent to wait for some follow-through buying before positioning for any further near-term appreciating move.

From current levels, the multi-month high, around the $22.05 region, could act as an immediate hurdle. The next relevant resistance is pegged near the $22.45-$22.50 supply zone, which if cleared will be seen as a fresh trigger for bulls and pave the way for additional gains.

The XAGUSD might then accelerate the momentum towards the $23.00 mark and eventually climb to the May swing high, around the $23.25-$23.30 area. Given that RSI on the daily chart is on the verge of breaking into the overbought zone, the latter should act as a tough nut to crack for bulls.

On the flip side, the daily low, around the $21.35 region, now seems to protect the immediate downside. Any further pullback could be seen as a buying opportunity and remain limited near the $21.00 mark, which should now act as a pivotal point for short-term traders.

A convincing break below could trigger some technical selling and drag the XAGUSD to the $20.40 support zone. Failure to defend the said support levels might negate the near-term positive outlook and shift the bias in favour of bearish traders.

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GBPUSD set to test the August 26 high near 1.19 – BBH

GBPUSD edges higher and is currently trading around the mid-1.1700s. Economists at BBH expect Cable to test the August 26 high near 1.19.

Monthly UK data dump began

“Cable broke above its September 13 high near 1.1740 and sets up a test of the August 26 high near 1.19.”

“Q3 growth came in at -0.2% QoQ vs. -0.5% expected and 0.2% in Q2, which translated into a YoY rate of 2.4% vs. 2.1% expected and 4.4% in Q2. This is just the beginning, as the BoE has warned that the recession had already started and would likely last two years. Of note, strong government spending, GFCF, and net exports all boosted the overall number and those components are likely to be large drags in Q4 and beyond.”

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EURUSD looks somewhat fragile again

EURUSD slides below parity. The Euro looks vulnerable again, in the view of economists at Scotiabank.

Euro stocks may support

“Ironically, the recent gains in spot have perhaps been getting some support from relatively better equity market returns in Europe versus North America which has seen better relative investor interest in FX unhedged European equity ETFs, data suggests. Investors want exposure to European stocks and the (cheap looking) EUR, in other words.” 

“Intraday patterns – very tentatively –  suggest some better EUR demand is emerging in the mid-0.99s but the failure to press higher after a strong advance from last week's low leaves the EUR looking somewhat fragile again.” 

“Support is 0.9890/00. Resistance is 1.0040/50.”

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