• In FX, a key short-term resistance in EURUSD at 1.0598, the 20-day EMA, remains intact. Monday’s move lower reinforces the short-term importance of this resistance. A clear break of this average is required to signal potential for a stronger recovery. This would open 1.0739, the 50-day EMA and allow for a continued unwinding of the oversold trend condition. The medium-term trend direction is down. The bear trigger lies at 1.0335, the Nov 22 low.
  • The latest recovery in GBPUSD appears corrective and the move higher has allowed an oversold trend condition to unwind. Initial firm resistance is 1.2723, the 20-day EMA and a key short-term hurdle for bulls. It has been pierced, a clear break of the EMA would signal scope for a stronger recovery. The medium-term trend direction remains down, with moving average studies in a bear-mode set-up. The bear trigger is 1.2487, the Nov 22 low.
  • USDJPY is trading closer to its recent lows. Last week’s move down marks an extension of the current bear phase. The pair has traded through both the 20- and 50-day EMAs. This signals scope for a deeper retracement, towards 148.17 next, the 50.0% retracement of the Sep 16 - Nov 15 bull leg. A reversal higher would refocus attention on the bull trigger at 156.75, the Nov 15 high. Initial firm resistance is seen at 152.58, the 20-day EMA.

OUTLOOK: Price Signal Summary - USDJPY Bear Cycle Remains In Play

Last updated at:Dec-03 10:55By: Taso Anastasiou
EUR/USD+ 2
  • In FX, a key short-term resistance in EURUSD at 1.0598, the 20-day EMA, remains intact. Monday’s move lower reinforces the short-term importance of this resistance. A clear break of this average is required to signal potential for a stronger recovery. This would open 1.0739, the 50-day EMA and allow for a continued unwinding of the oversold trend condition. The medium-term trend direction is down. The bear trigger lies at 1.0335, the Nov 22 low.
  • The latest recovery in GBPUSD appears corrective and the move higher has allowed an oversold trend condition to unwind. Initial firm resistance is 1.2723, the 20-day EMA and a key short-term hurdle for bulls. It has been pierced, a clear break of the EMA would signal scope for a stronger recovery. The medium-term trend direction remains down, with moving average studies in a bear-mode set-up. The bear trigger is 1.2487, the Nov 22 low.
  • USDJPY is trading closer to its recent lows. Last week’s move down marks an extension of the current bear phase. The pair has traded through both the 20- and 50-day EMAs. This signals scope for a deeper retracement, towards 148.17 next, the 50.0% retracement of the Sep 16 - Nov 15 bull leg. A reversal higher would refocus attention on the bull trigger at 156.75, the Nov 15 high. Initial firm resistance is seen at 152.58, the 20-day EMA.

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