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Price Signal Summary - USDJPY Downtrend Extends

OUTLOOK
  • In FX, EURUSD reversed sharply higher yesterday. The recovery is a bullish development and signals the end of the recent corrective pullback between Nov 29 - Dec 8. A continuation higher would signal scope for a test of key short-term resistance at 1.1017, the Nov 29 high and a bull trigger. Moving average studies are in a bull-mode position, highlighting an uptrend. Key support has been defined at 1.0724, the Dec 8 low. 1.0823 is first support, the 20-day EMA.
  • The trend outlook in GBPUSD remains bullish and the recent pullback is considered corrective. Moving average studies are in a bull-mode set-up, highlighting a rising trend. Initial firm support to watch is 1.2547, the 20-day EMA. It has been pierced, a clear break would expose 1.2461, the 50-day EMA. Key resistance and the bull trigger has been defined at 1.2733, the Nov 29 high. Clearance of this level would confirm a resumption of the uptrend.
  • A sharp sell-off in USDJPY yesterday and a continuation lower today, reinforces current bearish conditions. The pair has breached support at 141.71, the Dec 7 low, to confirm a resumption of the downtrend that started on Nov 13. Sights are on 140.71, 76.4% of the Jul 14 - Nov 13 bull run. Clearance of this level would further reinforce bearish conditions. On the upside, key short-term resistance has been defined at 146.59, the Dec 11 high. Today’s 142.90 high is the first resistance.

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