April 30, 2024 10:26 GMT
Price Signal Summary - USDJPY Support Remains Intact For Now
OUTLOOK
- In FX, EURUSD is holding on to the bulk of its recent gains. The pair has pierced resistance at 1.0723, the 20-day EMA. The recent move higher appears to be a correction, a resumption of the downtrend would open 1.0568, the Nov 2 2023 low, and 1.0528, the base of a bear channel drawn from the Dec 28 high. A clear break of the 20-day EMA would instead signal a stronger recovery. The 50-day EMA is at 1.0775.
- The trend condition in GBPUSD remains bearish, however, a corrective cycle is in play for now. The recent recovery is allowing an oversold condition to unwind. Moving average studies remain 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 the trend would open 1.2266, the Nov 14 2023 low. Resistance to watch is 1.2579, the 50-day EMA.
- The USDJPY trend condition remains bullish. Monday’s volatile session highlights the start of a possible corrective cycle. An early rally Monday stopped short of resistance at 160.20, the Apr 1990 high, before reversing lower. Note that the trend condition is overbought and a deeper retracement would allow the overbought set-up to unwind. Initial key support to watch lies at 154.24, the 20-day EMA.
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