• In FX, EURUSD continues to trade closer to its recent highs. A bullish short-term condition remains intact The pair has recently traded through both the 20- and 50-day EMAs. This signals scope for a continuation near-term and attention is on the bear channel top at 1.0848. The channel is drawn from the Dec 28 high and represents the next key resistance. Initial firm support to watch has been defined at 1.0650, May 1 low. A break would be bearish.
  • GBPUSD has pulled back from its recent 1.2634 high (May 3) and is trading lower today. Firm support has been defined at 1.2466, the May 1 low. Clearance of this level would reinstate a bearish threat and this would signal scope for an extension towards the bear trigger at 1.2300, the Apr 22 low. For bulls, a breach of 1.2634 would reinstate the recent upleg and open 1.2667, 61.8% retracement of the Mar 8 - Apr 22 bear leg.
  • USDJPY is trading higher today as the pair extends its recovery from 151.86, the May 3 low. For now, the recovery is considered corrective and a bear threat remains present following last week’s volatile retracement. A resumption of weakness would signal scope for a test of key support at 151.53, a trendline drawn from the Dec 28 low. Clearance of this line would strengthen a bearish threat. Initial resistance to watch is 156.28, May 2 high.

OUTLOOK: Price Signal Summary - USDJPY Is Approaching First Resistance

Last updated at:May-08 10:42By: Taso Anastasiou
  • In FX, EURUSD continues to trade closer to its recent highs. A bullish short-term condition remains intact The pair has recently traded through both the 20- and 50-day EMAs. This signals scope for a continuation near-term and attention is on the bear channel top at 1.0848. The channel is drawn from the Dec 28 high and represents the next key resistance. Initial firm support to watch has been defined at 1.0650, May 1 low. A break would be bearish.
  • GBPUSD has pulled back from its recent 1.2634 high (May 3) and is trading lower today. Firm support has been defined at 1.2466, the May 1 low. Clearance of this level would reinstate a bearish threat and this would signal scope for an extension towards the bear trigger at 1.2300, the Apr 22 low. For bulls, a breach of 1.2634 would reinstate the recent upleg and open 1.2667, 61.8% retracement of the Mar 8 - Apr 22 bear leg.
  • USDJPY is trading higher today as the pair extends its recovery from 151.86, the May 3 low. For now, the recovery is considered corrective and a bear threat remains present following last week’s volatile retracement. A resumption of weakness would signal scope for a test of key support at 151.53, a trendline drawn from the Dec 28 low. Clearance of this line would strengthen a bearish threat. Initial resistance to watch is 156.28, May 2 high.

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