November 20, 2023 11:44 GMT
Price Signal Summary - USDJPY Bear Leg Extends With The 50-Day EMA Breached
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- In FX,EURUSD has started the week on a bullish note as the pair extends last week’s rally. Recent strong gains reinforce the current bullish technical picture and the move higher signals scope for a climb towards 1.0945 next, the Aug 30 high and a key resistance. Moving average studies have crossed, highlighting a bull-mode position and a rising trend. Initial support lies at 1.0825, the Nov 17 low.
- A bull cycle in GBPUSD remains in play and last week’s gains reinforce current bullish conditions. Resistance at 1.2428, the Nov 6 high, has been breached and note that price is also through 1.2459, 38.2% of the Jul 14 - Oct 4 bear leg. This signals scope for a climb towards 1.2589 next, the 50.0% retracement point. Firm short-term support is at 1.2187, the Nov 10 low. A short-term pullback would be considered corrective. Initial support lies at 1.2320, the 50-day EMA.
- USDJPY has traded sharply lower today as it extends the pullback from 151.91, the Nov 13 high. Support at the 50-day EMA, at 149.19, has been cleared. The clear break of this EMA strengthens a short-term bearish theme and signals scope for a deeper correction, towards 147.43, the Oct 3 low. The primary trend direction remains up. A resumption of gains would refocus attention on 151.95, the Oct 21 2022 high.