USDJPY TECHS: Trading Above Support

• RES 4: 156.75 High Jan 23 
• RES 3: 155.89 High Feb 3
• RES 2: 155.53 2.00 projection of the Sep 17 - 26 - Oct 1 price swing
• RES 1: 155.50 High Nov 18
• PRICE: 155.06 @ 16:41 GMT Nov 18
• SUP 1: 153.49 20-day EMA
• SUP 2: 152.82 Low Nov 7   
• SUP 3: 151.58 50-day EMA  
• SUP 4: 150.47 Low Oct 21 

USDJPY traded higher again Tuesday, confirming a resumption of the uptrend and an extension of recent gains. The 155.00 handle has been cleared and sights are on 155.53 next, a Fibonacci projection. Note that moving average studies are in a bull-mode position, this continues to highlight a dominant uptrend. Initial firm support to watch is 153.49, the 20-day EMA. A clear breach of the average would signal scope for a corrective pullback.

Excess liquidity nearly drained: RRP usage down to $0.905B with 8 counterparties this afternoon from Monday's $3.172B. Compares to last Friday's (Nov 14) $1.559B - lowest level since mid-March 2021; this years highest excess liquidity measure: $460.731B on June 30.

• RES 4: 0.8893 2.000 proj of the Sep 15 - 25 - Oct 8 price swing    
• RES 3: 0.8875 High Apr 25 
• RES 2: 0.8868 61.8% retracement of the 2022 - 2024 bear leg
• RES 1: 0.8865 High Nov 14
• PRICE: 0.8814 @ 16:37 GMT Nov 18
• SUP 1: 0.8781 20-day EMA   
• SUP 2: 0.8769 Low Nov 10
• SUP 3: 0.8737 50-day EMA
• SUP 4: 0.8706 Low Oct 24 and a key support  

The trend condition in EURGBP remains bullish and the cross is trading closer to its recent trend highs. A fresh cycle high last week confirms a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Sights are on 0.8868 next, a Fibonacci retracement. On the downside, initial key short-term support to watch lies at  0.8781, the 20-day EMA. A break of the average would highlight the start of a corrective phase.