The USD/JPY pair fell during the day but found a little bit of support during the session in order to show that the 112 level has some bearing on the market. If we can break down below the bottom of the range for the day though, we feel that the market will grind its way down to the 110 level. Any rally at this point in time will more than likely have quite a bit of resistance above at the 115 level to deal with, so having said that we are sellers of breakdowns and of course exhaustive candles after short-term rallies.
The EUR/USD pair fell just a bit during the course of the session, testing the 1.10 level. If we can close below the level on the daily chart, we would be sellers as the market should then reach towards the 1.08 handle. On the other hand, if we break back above the 1.1050 level, we would be buyers as it should show the market continuing the uptrend and the breakout that we had recently seen. We will use the daily close to make any trades though, so we are not going to jump into this until the end of the session. The currency pair sliced through former resistance turned support at 1.1059, and is poised to test target support at 1.0919. Resistance is seen near the 10-day moving average at 1.1150.
The GBP/USD pair fell during the course of the day on Tuesday, testing the 1.40 level below. Once we get below their though, the market should continue to go even lower. Rallies at this point in time should be selling opportunities, on signs of exhaustion. We have no interest whatsoever in buying this market, it appears of the British pound is going to continue to grind even lower, and as a result we continue to sell again and again. We could very well see this particular pair reach the 1.37 level fairly soon.