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OUTLOOK: Price Signal Summary - USDJPY Remains Bearish But Is Oversold

OUTLOOK
  • In FX, EURUSD is trading at its recent highs. A bullish candle formation on Feb 3 - a hammer - signals a potential reversal. However, additional reinforcing price evidence is required to signal a turn in the trend. Moving average studies are in a bear-mode position, highlighting a downtrend. The 20-day EMA has been pierced and the focus is on 1.0439, the 50-day EMA. A clear break of it would be a bullish development. The bear trigger lies at 1.0141, the Feb 3 low.
  • GBPUSD remains below Wednesday’s high. Gains earlier this week resulted in a breach of the 20-day EMA and delivered a print above 1.2500, the 50-day EMA, and 1.2523, the Jan 27 high. A continuation higher would signal scope for a move towards 1.2610, 38.2% of the Sep 26 ‘24 - Jan 13 bear leg. On the downside, key short-term support to watch has been defined at 1.2249, the Jan 3 low. Clearance of this level would instead highlight a reversal.
  • A bearish theme in {USDJPY remains intact and this week’s move down reinforces current conditions. The sell-off expands the downside range, however, note that the pair has entered oversold territory. 151.06, 76.4% of the Dec 3 - Jan 10 bull leg, has been pierced. A clear break of it would open 149.69, the Dec 9 low. Firm resistance is seen at 154.83, the 50-day EMA. Gains would allow the oversold condition to unwind.
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  • In FX, EURUSD is trading at its recent highs. A bullish candle formation on Feb 3 - a hammer - signals a potential reversal. However, additional reinforcing price evidence is required to signal a turn in the trend. Moving average studies are in a bear-mode position, highlighting a downtrend. The 20-day EMA has been pierced and the focus is on 1.0439, the 50-day EMA. A clear break of it would be a bullish development. The bear trigger lies at 1.0141, the Feb 3 low.
  • GBPUSD remains below Wednesday’s high. Gains earlier this week resulted in a breach of the 20-day EMA and delivered a print above 1.2500, the 50-day EMA, and 1.2523, the Jan 27 high. A continuation higher would signal scope for a move towards 1.2610, 38.2% of the Sep 26 ‘24 - Jan 13 bear leg. On the downside, key short-term support to watch has been defined at 1.2249, the Jan 3 low. Clearance of this level would instead highlight a reversal.
  • A bearish theme in {USDJPY remains intact and this week’s move down reinforces current conditions. The sell-off expands the downside range, however, note that the pair has entered oversold territory. 151.06, 76.4% of the Dec 3 - Jan 10 bull leg, has been pierced. A clear break of it would open 149.69, the Dec 9 low. Firm resistance is seen at 154.83, the 50-day EMA. Gains would allow the oversold condition to unwind.