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Price Signal Summary - USDJPY Support Around The 20-Day EMA Remains Intact

OUTLOOK
  • In FX, EURUSD remains below its Feb 22 high. The pair has pierced resistance around the 50-day EMA - at 1.0834. A clear break of this average would highlight a stronger reversal. 1.0888, the Feb 22 high, is also seen as a key resistance. A breach would open 1.0932, Jan 24 high. Note that the price pattern on Feb 22 is a shooting star candle and a possible reversal signal. A stronger move lower would expose 1.0695, Feb 14 low.
  • A broader bear threat in GBPUSD remains present and the latest pullback reinforces this theme. A stronger reversal lower would refocus attention on key support and the bear trigger at 1.2519, the Feb 5 low. Clearance of this level would open 1.2500, the Dec 13 low, and 1.2432,50.0% of the Oct 4 - Dec 28 bull phase. For bulls resistance levels to watch are unchanged at 1.2775, the Jan 25 high and 1.2827, the Dec 28 high and key bull trigger.
  • The USDJPY trend outlook remains bullish and yesterday’s sell-off appears to have been a correction. The pair pierced support at 149.66, the 20-day EMA. A clear break of this average is required to signal potential for a deeper retracement, potentially towards the 50-day EMA, at 148.28. For bulls, a resumption of the trend would open 151.91/95, the Nov 13 ‘23 high and the Oct 1 ‘22 high and major resistance. The bull trigger is 150.89, Feb 13 high.

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