April 17, 2024 10:09 GMT
Price Signal Summary - USDJPY Trend Needle Continues To Point North
OUTLOOK
- In FX, the current downtrend in EURUSD remains intact and the pair traded to a fresh cycle low yesterday. Last week’s break of key support at 1.0695, the Feb 14 low and bear trigger, confirmed a resumption of the bear cycle. Support at 1.0611, 76.4% of the Oct - Dec bull rally, has been pierced and this opens 1.0568 next, the Nov 2 2023 low. Initial firm resistance is seen at 1.0769, the 20-day EMA.
- A bearish theme in GBPUSD remains intact and the pair is trading just above its recent low. The clear break of 1.2519, Feb 5 low, strengthens a bearish theme and signals a stronger reversal signal. Moving average studies are in a bear-mode set-up and this highlights a clear short-term downtrend. Scope is seen for an extension towards 1.2364, 61.8% of the Oct 4 - Mar 8 bull leg. On the upside, firm resistance has been defined at 1.2709, the Apr 10 high. Initial resistance is at 1.2540, Apr 2 / 1 low.
- The USDJPY bull cycle remains in play and this week’s extension reinforces current conditions. The break higher last week confirmed a resumption of the primary uptrend and maintains the bullish price sequence of higher highs and higher lows. The trend is overbought, however, this is not - for now - a concern for bulls. Moving average studies are in a bull mode position too. Sights are on the 155.00 handle next. Support lies at 151.84, 20-day EMA.
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