5 Straight Sessions of Gains bring Gold above $1860.
USD/JPY -US Dollar pulling back.
Resistance Zone: 131.00 to 131.30
Major Pivot Point: 127.00
Key Support: 125.50
Support Zone: 122.00 to 121.70
200 Day SMA – Green Line
50 Day SMA – Red Line
CBOE VIX – Volatility Index @ 29.45+ 0.97 (+3.41%)
Trade Insights - USD/JPY
The USD/JPY chart shows Viable Short positions below the Pivot point at 127.00, targeting the Key Support Level at 125.50. And then the Support Zone at 122.00 to 121.70.
Alternatively, Short positions below the Pivot level at 127.00 to head towards the Key Support level at 125.50. Then dropping further towards the support zone at 122.00 to 121.70.
USD/JPY pair has charged through all our past resistance zones and has peaked out at 131.40. The previous resistance levels have turned into support. The pair is discovering new resistance levels. See the chart above, the sign of exhaustion at the peak, and prices are consolidating under the Resistance zone at 131.00 to 131.30. USD/JPY rates may continue to fall towards the key support level at 125.5. As US equity markets are experiencing some volatility, which typically goes in hand with Yen strength.
The USD/JPY pair slipped below the 127.00 level on Tuesday and looks like the demand for the greenback has dampened. The RSI indicator has moved below the centre point of 50 on the daily chart and could slide further. The pair is now trading just above the 50-day EMA and well above the 200-day EMA level confirming a Bullish trend. However, in the shorter term, the chart indicates the USD/JPY pair could continue to experience some decline from here.
Fundamental Overview: US inflation rate is at 8.3% from a 41- year high of 8.5% in March. As US 10 Year Treasury rates have dropped to 2.765% around one month low. It seems the dollar would continue to fall towards support as it is already finding it hard to preserve its strength as we head into the end of May. As markets have already priced in two more 50 bps Fed Rates hikes in June and July the Dollar is struggling to find demand as investors take a cautious stance moving forward.
CBOE VIX – Volatility Index @ 29.45 +0.97 (+3.41%)
Trade Insights- XAU/USD
XAU/USD – Chart shows Viable long positions above the Pivot at $1850 with the first target of Key Resistance Level @ $1890 and after consolidation towards the Resistance Zone at $1920 to $1940.
Alternatively, Short positions below the Pivot at $1850 with the target of Key support level at $1830. Then it heads towards the Support Zone between $1790 to $1770.
XAU/USD chart shows that the gold prices have bounced back up and moved out of the descending channel now and are heading up from the past 5 sessions. Currently, the prices have moved above the Pivot point at $1850 and seem to consolidate. Declining dollar strength has also contributed to this in some parts and on the other hand, the investors are also tracking the Treasury yields that are around the monthly low now at 2.765%. The gold seems to be in a great space now after the breakout from the downtrend and a rebound that brought the prices above the $1850 support level.
The RSI Indicator is pushing higher above the 50 points mid-level. The prices have moved above the Green 200 Day SMA line and heading towards the 50-day SMA red line that has started to turn down and is a little below the indicating the Bullish bias of the investor.
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Charts of the Week - US Dollar pulling back | Gold above $1860
Charts of the Week - Technical Analysis
USD/JPY - US Dollar pulling back.
Trade Insights - USD/JPY
The USD/JPY chart shows Viable Short positions below the Pivot point at 127.00, targeting the Key Support Level at 125.50. And then the Support Zone at 122.00 to 121.70.
Alternatively, Short positions below the Pivot level at 127.00 to head towards the Key Support level at 125.50. Then dropping further towards the support zone at 122.00 to 121.70.
USD/JPY Chart Analysis: Directional bias 2 Week USD/JPY
USD/JPY pair has charged through all our past resistance zones and has peaked out at 131.40. The previous resistance levels have turned into support. The pair is discovering new resistance levels. See the chart above, the sign of exhaustion at the peak, and prices are consolidating under the Resistance zone at 131.00 to 131.30. USD/JPY rates may continue to fall towards the key support level at 125.5. As US equity markets are experiencing some volatility, which typically goes in hand with Yen strength.
The USD/JPY pair slipped below the 127.00 level on Tuesday and looks like the demand for the greenback has dampened. The RSI indicator has moved below the centre point of 50 on the daily chart and could slide further. The pair is now trading just above the 50-day EMA and well above the 200-day EMA level confirming a Bullish trend. However, in the shorter term, the chart indicates the USD/JPY pair could continue to experience some decline from here.
Fundamental Overview: US inflation rate is at 8.3% from a 41- year high of 8.5% in March. As US 10 Year Treasury rates have dropped to 2.765% around one month low. It seems the dollar would continue to fall towards support as it is already finding it hard to preserve its strength as we head into the end of May. As markets have already priced in two more 50 bps Fed Rates hikes in June and July the Dollar is struggling to find demand as investors take a cautious stance moving forward.
XAUUSD / 5 Straight Sessions of Gains bring Gold above $1860.
Trade Insights - XAU/USD
XAU/USD – Chart shows Viable long positions above the Pivot at $1850 with the first target of Key Resistance Level @ $1890 and after consolidation towards the Resistance Zone at $1920 to $1940.
Alternatively, Short positions below the Pivot at $1850 with the target of Key support level at $1830. Then it heads towards the Support Zone between $1790 to $1770.
XAU/USD Chart Analysis: Directional bias - 2 Weeks
XAU/USD chart shows that the gold prices have bounced back up and moved out of the descending channel now and are heading up from the past 5 sessions. Currently, the prices have moved above the Pivot point at $1850 and seem to consolidate. Declining dollar strength has also contributed to this in some parts and on the other hand, the investors are also tracking the Treasury yields that are around the monthly low now at 2.765%. The gold seems to be in a great space now after the breakout from the downtrend and a rebound that brought the prices above the $1850 support level.
The RSI Indicator is pushing higher above the 50 points mid-level. The prices have moved above the Green 200 Day SMA line and heading towards the 50-day SMA red line that has started to turn down and is a little below the indicating the Bullish bias of the investor.
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The information provided is of a general nature and is not intended to be personalised financial advice. The information provided is not intended to be a substitute for professional advice. You may seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances.
Vishal, R.
May 25, 2022
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