Short-term trend conditions in USDJPY remain bearish and the pair traded lower Thursday. The reversal from Tuesday’s high of 142.25 signals the end of the corrective bounce between Nov 15 - 22. Attention is on the bear trigger at 137.68, the Nov 15 low where a break would confirm a resumption of the downtrend and open 137.37, the Aug 29 low. Key short-term resistance is seen at 142.25.
Find more articles and bullets on these widgets:
The EURJPY uptrend remains intact and the latest sharp pullback appears to be a correction. The cross has found strong support below 144.18, the 20-day EMA and key support has been defined at 143.80, Monday’s low. A continuation higher would open last Friday’s high of 148.40. This is the bull trigger and a break would confirm a resumption of the uptrend. Moving average studies continue to highlight a bullish backdrop.
AUDUSD now trades a point above the 20-day EMA, cementing the break above resistance on Tuesday to confirm a bullish shift to the technical backdrop. This opens gains toward key resistance at the Oct 4 highs at 0.6547. Despite the recent gains, however, moving average studies continue to highlight a downtrend. This keeps support at 0.6133 in view, a Fibonacci projection.
Better first half upside call buying evaporated in the second half as the post-BOC tied rally in underlying FI futures leveled out. Salient trade: