EUR/USD Technical view

After having broken longterm support at 1.2700 around May 10th, the pair has found initial support only at the steep downtrending channel bottom at 1.2150. Priceaction since then has been merely sideways to a little higher, and for the very nearterm that might continue with upside capped at 1.2710. I expect downtrend to resume within next week for a move to support at 1.1850. This is the final stage of the major move lower seen since November last year from 1.5150 high. For 2H10 I expect strong support at 1.1850 to hold and push the pair back higher towards 1.2800 before the next attempt lower will start.

USD/JPY Technical view

In March of this year usd/jpy broke higher out of the multiyear downtrend. Resistance at the time was at 91.15, and a subsequent move to 95.00 was seen. This week the pair has retested the former longterm resistance, now acting as support at 89.20. Outlook for the next three months is for a strong move higher, with main resistance coming in at 91.00, 92.15 and 95.10 for a final target of 98.00. There is a minor risk we might see a small dip lower first to 88.80 before higher, nearterm support is at 89.60.