FTSE100 and DAX rally – Will we finally see some JPY strength next week? [Video]

Brad Alexander FX Large Limited

In today’s Market Outlook, let’s take a look at Forex Trading on USD/JPY, GBP/JPY, NZD/JPY, WTI, Brent Crude Oil, the S&P500, the FTSE100, and the DAX40.

In our last video we spotted potential reversals in fortune for both the German DAX40 and the UK’s FTSE100 and look at what happened to both.

On the FTSE100 4-hour chart we are seeing bullish price action, bullish confluence in the stochastic oscillator, and MACD heading into bullish territory.

We are seeing the exact same situation on the DAX as well.

Regarding the major US indices, remember that this is the Thanksgiving holiday extra long weekend so not much is going to happen until the Monday New York opening.

This chart on the S&P500 illustrates my point.

Unless, of course, we see some more crazy fundamental events out of Washington over the weekend…we never know, do we?

Looking at the Crude Oil markets, Brent and WTI are still heading lower and we wonder if price action might be forming a symmetrical pennant.

Price action is heading back to the upper trend line but be aware of this Sunday’s OPEC meeting.

Analysts are thinking that they make pause making any changes in oil production to try to stabilise the market into 2026 but we never know until the time.

We are seeing some consolidation in JPY pairs ahead of Monday’s Bank of Japan statement.

Inflation in Japan is still higher than 2% so there may be a hawkish tone to indicate Interest Rate increases which could finally inject some strength into the yen.

Technically, we see USDJPY at over 156 yen and price action has faithfully followed higher lows into a symmetrical pennant.

We see consolidation in the stochastic oscillator as well.

On GBPJPY, we have to look at the weekly chart to see prices over 206 yen back in June so, are we anticipating a reversal?

We hadn’t seen JPY this weak against GBP since 2008.

Another candidate for a reversal may be NZDJPY which has just seen a surge thanks to the New Zealand Interest rate decision we looked at in the last video.

Keep in mind that the fundamentals will likely drive the next moves but we will also watch the technicals like the stochastic oscillator and MACD.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

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