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OUTLOOK: Price Signal Summary - USDJPY Trend Needle Points South

OUTLOOK
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  • In FX, the short-term trend outlook in EURUSD remains bullish, however, today’s move lower suggests potential for a deeper retracement. The pair has breached support at the 20-day EMA, at 1.1116. This exposes the next key support at 1.1044, the 50-day EMA. Trend signals remain bullish. A resumption of gains would open 1.1234, a 1.618 projection of the Jun 26 - Jul 17 - Aug 1 price swing and 1.1276, the Jul 18 '23 high.
  • GBPUSD is trading lower today - a correction. The recent move higher resulted in a breach of key resistance at 1.3266, the Aug 27 high, confirming a resumption of the medium-term uptrend. Note that moving average studies remain in a bull-mode position, reflecting a clear uptrend. Scope is seen for a climb towards the 1.3500 handle next. Initial firm support is 1.3250, the 20-day EMA.
  • Recent gains in USDJPY appear to have been a correction and Friday’s sell-off reinforces this theme. The move down also highlights a likely resumption of the downtrend. An extension lower would open 139.58, the Sep 16 low and a bear trigger. Clearance of this level would confirm a resumption of the downtrend and open 139.00, a 1.382 projection of the Aug 15 - 26 - Sep 3 price swing. Key resistance is at 146.29, the 50-day EMA.
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  • In FX, the short-term trend outlook in EURUSD remains bullish, however, today’s move lower suggests potential for a deeper retracement. The pair has breached support at the 20-day EMA, at 1.1116. This exposes the next key support at 1.1044, the 50-day EMA. Trend signals remain bullish. A resumption of gains would open 1.1234, a 1.618 projection of the Jun 26 - Jul 17 - Aug 1 price swing and 1.1276, the Jul 18 '23 high.
  • GBPUSD is trading lower today - a correction. The recent move higher resulted in a breach of key resistance at 1.3266, the Aug 27 high, confirming a resumption of the medium-term uptrend. Note that moving average studies remain in a bull-mode position, reflecting a clear uptrend. Scope is seen for a climb towards the 1.3500 handle next. Initial firm support is 1.3250, the 20-day EMA.
  • Recent gains in USDJPY appear to have been a correction and Friday’s sell-off reinforces this theme. The move down also highlights a likely resumption of the downtrend. An extension lower would open 139.58, the Sep 16 low and a bear trigger. Clearance of this level would confirm a resumption of the downtrend and open 139.00, a 1.382 projection of the Aug 15 - 26 - Sep 3 price swing. Key resistance is at 146.29, the 50-day EMA.