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Price Signal Summary - USDJPY Bear Cycle Extends

  • In FX, EURUSD continues to appreciate. This week’s break of resistance at 1.1012, the Jun 22 high, confirmed a resumption of the uptrend that started May 31. Moving average studies remain in bull-mode position reinforcing current trend conditions. The focus is on 1.1054 next, the May 8 high, ahead of key resistance at 1.1095, the Apr 26 high. On the downside, initial firm support lies at 1.0909, the 20-day EMA.
  • GBPUSD conditions remain bullish. This week’s break of resistance at 1.2848, the Jun 16 high, confirms a resumption of the medium-term uptrend and maintains the bullish price sequence of higher highs and higher lows. Note that moving average studies are in a bull-mode position. The focus is on 1.2977 next, the 0.764 projection of the Mar 8 - May 10 - May 25 price swing. Initial firm support lies at 1.2726, the 20-day EMA.
  • USDJPY maintains a bearish tone and the pair is trading lower again today as it extends the bear cycle that started Jun 30. The recent sell-off has resulted in a break of both the 20- and 50-day EMAs and price is again inside the bull channel drawn from the Jan 16 low. The move signals scope for an extension towards 139.18 next, a Fibonacci retracement. Initial resistance is at 140.34, the 50-day EMA.

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