April 19, 2024 09:43 GMT
Price Signal Summary - USDJPY Bulls Remain In The Driver's Seat
OUTLOOK
- In FX, the current downtrend in EURUSD remains intact and the pair is trading closer to its recent lows. The break on Apr 12 of key support at 1.0695, the Feb 14 low and bear trigger, confirmed a resumption of the bear cycle. This signals scope for a move towards 1.0568 next, the Nov 2 2023 low, and 1.0549, the base of a bear channel drawn from the Dec 28 high. Initial firm resistance is seen at 1.0749, the 20-day EMA.
- The trend condition in GBPUSD remains bearish and the pair has traded to a fresh cycle low today. The recent breach of 1.2519, the Feb 5 low, strengthens a downtrend and highlights a stronger reversal. Moving average studies are in a bear-mode set-up, reinforcing a bearish theme. Scope is seen for an extension towards 1.2364, 61.8% of the Oct 4 - Mar 8 bull leg. On the upside, initial firm resistance is seen at 1.2561, the 20-day EMA.
- USDJPY bulls have paused for breath. Recent gains have confirmed a resumption of the primary uptrend and this maintains the bullish price sequence of higher highs and higher lows. The trend is overbought, however, this is clearly not a concern for bulls at this stage. Moving average studies are in a bull mode position too. Sights are on the 155.00 handle next. Support lies at 152.55, 20-day EMA.
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