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USDJPY Doji Candle Signals Reversal

MARKET INSIGHT
  • In the equity space, S&P E-minis are trading at the midpoint of this year's range and importantly above support at 4572.75, the Jan 10 low. The outlook remains bullish while this support holds. Key near-term resistance is at 4739.50, last Wednesday’s high and 4752.67, 76.4% of the Jan 4 - 10 sell-off. A break of this resistance zone would reinstate a bullish theme and expose the key resistance at 4808.25, the Jan 4 all-time high. Sub 4572.75 levels would reinstate a bearish threat. EUROSTOXX 50 futures remain above the 50-day EMA and the key short-term support at 4216.50, the Jan 10 low. A resumption of gains would open 4381.5, the Jan 5 high. Initial resistance is at 4324.50, Thursday’s high.
  • In FX, the recent EURUSD break higher resulted in a range breakout, through 1.1386, Dec 31 high and a breach of the top of the bear channel drawn from the Jun 1, 2021 high. This signals scope for a continuation higher with the focus on 1.1514 next, Nov 5 low. Support is seen at 1.1386. GBPUSD trend conditions are unchanged and remain bullish. Attention is on the 200-dma, at 1.3737. This average has been probed, a clear break would open 1.3835, Oct 20 high. USDJPY traded below its 50-day EMA last week but has managed to find support. Friday’s pattern is a doji candle - bullish reversal - and highlights a key support at 113.49, Friday’s low. An extension higher would open 115.68, Jan 11 high. For bears, sub 113.49 levels would reinstate the recent bearish pressure.
  • On the commodity front, Gold maintains a bullish short-term tone. The yellow metal remains inside its bull channel drawn from the Aug 9 low. The focus is on key near-term resistance at $1831.9, Jan 3 high where a break would open $1849.1, the Nov 22 high.
  • In the FI space, the Bund futures have started the week on a softer note and traded below support at 169.57, Jan 11 low. This reinforces the current bearish trend and attention is on 169.34, Oct 29 low. 171.00 is resistance, Jan 13 high. Gilts remain in a downtrend too and the recent recovery is considered corrective. The focus is on 122.66 next, 3.764 projection of the Dec 8 - 16 - 20 price swing.
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
Fixed Income Technical AnalysisForeign Exchange Technical AnalysisHomepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets

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