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(BFW) Daily FX View: Growth FX Benefit From Tepid Risk-On Rally

Overnight, JPY underperformed, growth FX, including AUD,NZD and MXN up modestly vs USD with most equities, commodities, sovereign yields higher, Bloomberg strategist TJ Marta writes.

• USD/JPY testing downtrend, Dep. BoJ Gov. Iwata reiterates commitment to monetary accommodation
• Support ~97 late-Aug., Oct. lows, 96.57 Oct. 8 low
• Resistance 97.77 downtrend, 99.17 Oct. 17 high

• CAD, AUD consolidate downtrends
• USD/CAD forming inside day lower from Fri. high since Sept.
• Resistance 1.0461 Oct. 25 high, 1.0472 Aug. 27, 28 low
• Support 1.0420 Oct. 10 high, 1.0721 Sept. 24, Oct. 22 low
• AUD/USD forming inside day higher
• Support 0.9752 Oct. 23, 24 low, 0.9529 Sept. 18 high
• Resistance 0.9666 June 14 high, 0.9758 Oct. 23 high

• USD/MXN pressing lower with lower intra-day highs Fri., Mon. vs ~12.84 holding since Oct. 21
• Broke below pennant formation last week
• Support ~12.84, 12.7481 Oct. 17 low
• Resistance 13.0380 Oct. 1 low, 13.0485 Oct. 24 high

• EUR/USD overbought with uptrend momentum slowing; forming 3rd doji in 4 sessions; elevated risk of 3-7% pullback, though upside target remains 1.425~
• MACD near Feb., June highs, with differential moderating
• RSI near Feb. high
• Stochastics near June, July highs
• Support 1.3711 Feb. 1 high, 1.3646 Oct. 3 high
• Resistance 1.3832 Oct. 25 high, ~1.425 Oct. 2011 high, 76.4% Fibo rebound of 2011-2012 decline

• NOTE: TJ Marta is an FX strategist who writes for First Word. The observations he makes are his own.