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Oil finding a low after 4% drop? – USDJPY setting up a new leg higher?

jeffriess
December 2, 2019
by Joseph Jeffriess, Market Analyst

Article Recap

Oil fights back after a 4.5% drop - OPEC meetings on Thursday - Suadi Arabia talk about production cuts into 2020 - USDJPY starts to break out of a consolidation pattern.

Today we take a look at Oil and USDJPY.

Oil finished the week with a shock +4% move lower. Traders looking at the resignation of Iraq’s Priminster as a driver for the move. After spending most of the week defending $57.75, seller hammered what was a short term base taking price back below $56. price has started the week with a gap higher and we’re watching $55.20 as a level that we would like to see develop into potential support. This morning’s recovery, buyers look to have been supported by news Suadi Arabi will push for production cuts through mid-2020 at this weeks OPEC meeting that kicks off on Thursday.

USDJPY started morning trade contained in an ascending triangle pattern, these are normally seen as continuation patterns in existing uptrends. Buyers have started the week on the front foot adding 20 pips to this point in the Asian session. At this point, the pattern has started to confirm but we would like to see a strong session from buyers to show buyer commitment.

Today’s Video, we do a technical breakdown on Oil daily and 4H chart and on the daily USDJPY chart.

Good trading from Eightcap.
All times are AEDT.