May 18, 2023 10:01 GMT
Price Signal Summary - USDJPY Pierces A Key Resistance Zone
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- In FX, EURUSD maintains a bearish short-term tone and the pair traded lower yesterday, extending the bear cycle that started on Apr 26. The 50-day EMA, at 1.0889 and a key support, has been breached. This signals scope for an extension lower towards 1.0805 next, 50.0% retracement of the Mar 15 - Apr 26 bull run. A break of this price level would open 1.0788, the Apr 3 low. Initial firm resistance is at 1.0889, the 50-day EMA.
- A short-term corrective cycle in GBPUSD remains in play. Yesterday’s low print reinforces the short-term bearish theme. The focus is on the 50-day EMA which intersects at 1.2407 - a key short-term support. A clear break of this average would strengthen bearish conditions and open 1.2345, the Apr 10 low. Initial resistance is at 1.2547, the May 16 high.
- USDJPY maintains a bullish tone and Wednesday’s gains reinforce current conditions. The pair has today pierced resistance at 137.77, the May 2 high and 137.91, the Mar 8 high. A clear break of this resistance zone would strengthen bullish conditions and confirm a resumption of the uptrend that started on Jan 16. This would open 138.17, the Dec 15 high. Initial firm support is seen at 135.22, the 20-day EMA.