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Price Signal Summary - USDJPY Corrective Cycle Remains In Play

OUTLOOK
  • In FX, a bullish theme in {EU} EURUSD remains intact and the pair continues to appreciate. Recent strong gains reinforce the current positive technical picture and the focus is on 1.1005, the Aug 11 high and 1.1065, the Aug 10 high and a key resistance. Moving average studies have crossed and are currently in a bull-mode position, highlighting positive market sentiment. Support lies at 1.0825, the Nov 17 low.
  • A bull cycle in GBPUSD remains in play and this week’s gains reinforce current bullish conditions. Resistance at 1.2506, the Nov 14 high has been cleared The break higher confirms a resumption of the uptrend and maintains a price sequence of higher highs and higher lows. Sights are on 1.2589, 50.0% of the Jul 14 - Oct 4 bear leg. On the downside, initial support has been defined at 1.2374, the Nov 17 low.
  • USDJPY has traded lower today as the pair extends the corrective pullback from 151.91, the Nov 13 high. Support at the 50-day EMA, at 149.16, has been cleared. This strengthens a short-term bearish theme and signals scope for a deeper correction, towards 146.00, a trendline support drawn from the Mar 24 low. The primary trend direction remains up. A resumption of gains would refocus attention on 151.95, the Oct 21 2022 high.

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