Trading short GBP/JPY? USD Index consolidating, gold (XAU/USD) at lower trend line [Video]

Brad Alexander FX Large Limited

Is the big JPY reversal about to begin?

I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at the USD Index, WTI (USOil), the DAX (DE40), Gold (XAUUSD) and GBPJPY.

As you know the Japanese Yen is incredibly weak right now due to the fundamental effects of Interest Rate and Bond Yield differentials and we have been waiting for a big reversal.

We see Rising Wedges (a bearish pattern) on almost all the JPY pairs so let’s keep an eye on these.

We want to trade short when the time is right, but against a weak currency, not a strong one.

Right now, GBP is displaying some weakness but this might be temporary due to the current political situation.

Also, before you make any technical decisions, remember that tomorrow’s US CPI report will be a huge event and will affect the FX and Equity markets.

Gold is still trending up and price action is following this lower trend line but I would wait for confirmation from another indicator and, of course, be careful with tomorrow’s CPI.

We see price action on WTI at the upper trend line and the Stochastic Oscillator about to turn lower.

Price action on the USD Index is consolidating into this symmetrical pennant with the same on the Stochastic Oscillator and MACD.

And, finally, we see a Rising Wedge on the DAX so we will keep an eye on this.

Author

Brad Alexander

FX Large Limited

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

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.