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Price Signal Summary - Major Resistance In USDJPY Remains Exposed

OUTLOOK
  • In FX, EURUSD traded sharply higher yesterday. The short-term outlook remains bearish, however, a clear breach of resistance at 1.0864, Mar 26 high, would improve conditions for bulls. A move higher would highlight a break of both the 20- and 50-day EMAs and signal scope for a climb towards 1.0943, the Mar 21 high. Key support lies at 1.0695, the Feb 14 low and bear trigger. A break of it would confirm a resumption of the bear leg that started on Dec 28.
  • A bearish threat in GBPUSD remains present despite Wednesday’s bump higher. Resistance to watch is 1.2666, the 50-day EMA. It has been pierced, a clear break of this average would improve short-term conditions and signal scope for stronger recovery - towards 1.2717, the 50.0% retracement of the Mar 8 - Apr 1 bear leg. For bears, recent weakness has exposed 1.2519, the Feb 5 low and key support. Clearance of this level would strengthen the bearish theme.
  • The USDJPY trend needle continues to point north. The recent sideways move appears to be a flag - a bullish continuation pattern. Note that MA studies are in a bull-mode position too highlighting an uptrend. The pair is testing resistance at 151.91/95, the Nov 13 ‘23 and Oct 1 ‘22 highs respectively. A clear break of this zone would resume the L/T uptrend and open 152.66, the 1.236 projection of the Feb 1 - 13 - Mar 8 price swing. Support is at 150.69, the 20-day EMA.
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  • In FX, EURUSD traded sharply higher yesterday. The short-term outlook remains bearish, however, a clear breach of resistance at 1.0864, Mar 26 high, would improve conditions for bulls. A move higher would highlight a break of both the 20- and 50-day EMAs and signal scope for a climb towards 1.0943, the Mar 21 high. Key support lies at 1.0695, the Feb 14 low and bear trigger. A break of it would confirm a resumption of the bear leg that started on Dec 28.
  • A bearish threat in GBPUSD remains present despite Wednesday’s bump higher. Resistance to watch is 1.2666, the 50-day EMA. It has been pierced, a clear break of this average would improve short-term conditions and signal scope for stronger recovery - towards 1.2717, the 50.0% retracement of the Mar 8 - Apr 1 bear leg. For bears, recent weakness has exposed 1.2519, the Feb 5 low and key support. Clearance of this level would strengthen the bearish theme.
  • The USDJPY trend needle continues to point north. The recent sideways move appears to be a flag - a bullish continuation pattern. Note that MA studies are in a bull-mode position too highlighting an uptrend. The pair is testing resistance at 151.91/95, the Nov 13 ‘23 and Oct 1 ‘22 highs respectively. A clear break of this zone would resume the L/T uptrend and open 152.66, the 1.236 projection of the Feb 1 - 13 - Mar 8 price swing. Support is at 150.69, the 20-day EMA.