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OUTLOOK: Price Signal Summary - USDJPY Bulls Remain In The Driver's Seat

OUTLOOK
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  • In FX, EURUSD traded lower last week and remains in a bearish cycle. Support at 1.1002, the Sep 11 low, has been breached. This level marked the midpoint of a double top reversal pattern on the daily chart and highlights a stronger reversal. An extension lower would open 1.0881, 76.4% of the Aug 1 - Sep 25 bull leg and the next important support. Initial firm resistance is at 1.1033, the 20-day EMA.
  • The short-term trend condition in GBPUSD remains bearish and the pair is trading just ahead of its recent lows. Price action remains below the 20-day EMA and attention is on the next important support at 1.3002, the Sep 11 low. A clear break of this level would expose 1.2959, 61.8% of the Aug 8 - Sep 25 bull leg. On the upside, initial resistance to watch is 1.3170, the 20-day EMA. A clear breach of this average would signal a reversal.
  • USDJPY bulls remain in the driver’s seat and price is trading at recent highs. The pair's latest gains resulted in a break of the 50-day EMA, a bullish development that undermines a recent bearish theme and highlights a stronger reversal. Sights are on 150.76, the 50% retracement for the Jul 3 - Sep 16 bear leg. Initial firm support is 146.23, the 20-day EMA.
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  • In FX, EURUSD traded lower last week and remains in a bearish cycle. Support at 1.1002, the Sep 11 low, has been breached. This level marked the midpoint of a double top reversal pattern on the daily chart and highlights a stronger reversal. An extension lower would open 1.0881, 76.4% of the Aug 1 - Sep 25 bull leg and the next important support. Initial firm resistance is at 1.1033, the 20-day EMA.
  • The short-term trend condition in GBPUSD remains bearish and the pair is trading just ahead of its recent lows. Price action remains below the 20-day EMA and attention is on the next important support at 1.3002, the Sep 11 low. A clear break of this level would expose 1.2959, 61.8% of the Aug 8 - Sep 25 bull leg. On the upside, initial resistance to watch is 1.3170, the 20-day EMA. A clear breach of this average would signal a reversal.
  • USDJPY bulls remain in the driver’s seat and price is trading at recent highs. The pair's latest gains resulted in a break of the 50-day EMA, a bullish development that undermines a recent bearish theme and highlights a stronger reversal. Sights are on 150.76, the 50% retracement for the Jul 3 - Sep 16 bear leg. Initial firm support is 146.23, the 20-day EMA.