EUR/USD could move back to 200-day SMA
Yesterday saw the pair hit the descending trendline off the May high, which capped gains in August and earlier in September.
EUR/USD needs to break $1.1280 to be in with a chance of breaking this downtrend. Otherwise it risks a move back to the 200-day simple moving average (SMA) at $1.1156.
Overnight losses have steadied around $1.1240, so this provides a short-term base for any rally.
USD/JPY rally needs to clear last week's high
Here too a base appears to be forming, since a sudden plunge towards ¥100 brought out buyers again, as it did on 22 September.
The gains appear to be petering out below ¥100, so this process may take more time. Any rally needs to clear last week’s high at ¥101.22.
Ultimately, the pair is still stuck in the downtrend that has prevailed since the start of the year, but the lack of a new lower low below the ¥100 support level still makes it difficult to call the direction for coming weeks.