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Price Signal Summary - USDJPY Holds On To This Week's Gains

OUTLOOK
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  • In FX, the latest move in EURUSD is considered corrective and for now, appears to be a flag formation - a bullish continuation pattern that reinforces the uptrend. A bear channel breakout on May 15 - price cleared the top of a channel drawn from the Dec 28 high - confirms a stronger reversal. Sights are on 1.0933 next, 61.8% of the Dec 28 - Apr 16 bear leg. Initial firm support to watch lies at 1.0789, the 50-day EMA.
  • A bullish trend condition in GBPUSD remains intact following recent gains and a short-term pullback would be considered corrective. The recent breach of 1.2634, the May 3 high, confirmed a resumption of the current bull cycle and this opened 1.2754, 76.4% of the Mar 8 - Apr 22 bear leg. 1.2754 was pierced Wednesday, a clear break would expose 1.2803, the Mar 21 high. Initial firm support to watch lies at 1.2596, the 50-day EMA.
  • USDJPY is holding on to this week’s gains. The pair has breached resistance at 156.74, the May 14 high and 157.00, 61.8% of the Apr 29 - May 3 sell-off. A continuation higher would open 157.99, the May 1 high. For bears, a reversal lower would refocus attention on 153.91, the 50-day EMA, and 152.97, trendline support drawn from the Dec 28 low. Clearance of these two price points would strengthen a bearish threat.
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  • In FX, the latest move in EURUSD is considered corrective and for now, appears to be a flag formation - a bullish continuation pattern that reinforces the uptrend. A bear channel breakout on May 15 - price cleared the top of a channel drawn from the Dec 28 high - confirms a stronger reversal. Sights are on 1.0933 next, 61.8% of the Dec 28 - Apr 16 bear leg. Initial firm support to watch lies at 1.0789, the 50-day EMA.
  • A bullish trend condition in GBPUSD remains intact following recent gains and a short-term pullback would be considered corrective. The recent breach of 1.2634, the May 3 high, confirmed a resumption of the current bull cycle and this opened 1.2754, 76.4% of the Mar 8 - Apr 22 bear leg. 1.2754 was pierced Wednesday, a clear break would expose 1.2803, the Mar 21 high. Initial firm support to watch lies at 1.2596, the 50-day EMA.
  • USDJPY is holding on to this week’s gains. The pair has breached resistance at 156.74, the May 14 high and 157.00, 61.8% of the Apr 29 - May 3 sell-off. A continuation higher would open 157.99, the May 1 high. For bears, a reversal lower would refocus attention on 153.91, the 50-day EMA, and 152.97, trendline support drawn from the Dec 28 low. Clearance of these two price points would strengthen a bearish threat.