EUR/USD: Bullish: Target 1.1600, next key level at 1.1710.
We highlighted last Friday that a daily close above 1.1400 would indicate the start of a move to 1.1465. This level was easily exceeded as EUR surged to a high of 1.1536 yesterday. The next target from here is at 1.1600 and a clear break above this level would shift the focus to the August 2015 peak of 1.1710.
GBP/USD: Bullish: Next target at 1.4815.
The 1.4670 profit-taking level indicated in recent updates was exceeded last Friday with a high of 1.4672. GBP dipped to a low of 1.4590 after that but the subsequent strong upmove suggests that the bullish phase that started early last week still intact. From here, the focus is for further extension to the year-to-date high at 1.4815 (seen in early January).
NZD/USD: Shift from neutral to bullish: Target 0.7115.
The unexpected clear breach of 0.7000 yesterday coupled with the strong daily closing has shifted the outlook for NZD to bullish once again. The target is at 0.7115.
USD/JPY: Bearish: Next support at 105.20.
We shifted to a bearish USD view last Friday and the 106.10 target was just reached as of the time of writing. The 200 pips drop is clearly over-extended and especially from a short-term perspective those who are short should look to book partial profit at current level. The next target to aim for is at 105.20, the minor low back in October 2014.