April 29, 2024 10:10 GMT
Price Signal Summary - USDJPY Enters A Corrective Cycle As Overbought Condition Unwinds
OUTLOOK
- In FX, EURUSD has pierced resistance at 1.0723, the 20-day EMA. The recent move higher appears to be a correction that is allowing an oversold condition to unwind. A resumption of the downtrend would signal scope for weakness towards 1.0568 next, the Nov 2 2023 low, and 1.0531, the base of a bear channel drawn from the Dec 28 high. A clear break of the 20-day EMA would instead signal scope for a stronger recovery. The 50-day EMA is at 1.0777.
- The trend condition in GBPUSD remains bearish, however, a corrective cycle is in play for now and this is allowing an oversold condition to unwind. Moving average studies are in a bear-mode set-up and the recent break lower, maintains the downward price sequence of lower lows and lower highs. A resumption of weakness would open 1.2266, the Nov 14 2023 low. Resistance to watch is 1.2580, the 50-day EMA.
- The USDJPY trend condition remains bullish, however, today’s session has been volatile. An early rally stopped short of a resistance at 160.20, the Apr 1990 high before reversing lower. Note that the trend condition is overbought. A deeper retracement would allow the overbought set-up to unwind. Initial key support to watch lies at 154.01, the 20-day EMA. The 50-day EMA lies at 151.91.
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