• Gold Spot broke back below support at 1937/34 for a more negative outlook.

  • USDJPY makes the biggest single-day gain since the rally started on 7th March, having risen every day except 2 in 3 weeks. This could be the end of a short squeeze as bears finally throw in the towel. Although there is no sell signal despite severely overbought conditions, I think there is a good chance the pair has seen a high for the bull run at this stage.

  • EURJPY rocketed 350 pips, as far as 137.52, then gave up 200 pips of the gains. Although there is no sell signal despite severely overbought conditions, I think there is a good chance the pair has seen a high for the bull run at this stage.

  • NZDJPY shot higher by 200 pips to hit 8674 but has given up 150 pips of the gains. Perhaps yesterday was a short covering day, meaning the end of the short squeeze & now prices will see a drift lower.

Daily analysis

Gold broke strong support at 1937/34 to turn the outlook negative now. Holding below 1935 targets 1917/15, 1910 & perhaps as far as 1905/03. Further losses retest the March low at 1895/94.

The important longer-term pattern is the huge double top after the March high at 2069 when prices failed to beat the all-time high at 2072. As long as prices stay below 1935/40 the short term outlook is negative (& in the longer-term prices could head significantly lower). Shorts need stops above 1950.

USDJPY runs up another 300 pips in just a morning before giving up almost half of the gains. I think the pair will head lower. Minor support at 123.60/40 but below here can target 123.20/10 & support at 122.70/50. A low for the day is expected but longs need stops below 122.30.

Minor resistance at 124.15/25. Strong resistance at yesterday's high of 125.00/10. A break above 125.30 however can target 125.60/70.

EURJPY has minor support at 135.60/50 but below 135.20 can target better support at 134.50/30. Watch for a low for the day. Longs need stops below 134.10. Minor resistance at 136.25/35. A break above 136.50 can retest yesterday's high at 137.40/52. A break higher can target 137.90/99.

NZDJPY may finally react to severely overbought conditions. Minor support at 8510/8490 but below here can target 8450/40 & better support at 8410/8390. Watch for a low for the day - longs need stops below 8370.

Minor resistance at 8560/70. However if we continue higher we could expect strong resistance at yesterday's high of 8655/75. A break higher however is a buy signal.

The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD hovers around 1.0800 on Fed's decision

EUR/USD hovers around 1.0800 on Fed's decision

EUR/USD returned to the 1.0800 price zone after the Federal Reserve announced its decision to cut the benchmark interest rate by 25 bps as widely anticipated.  Chair Jerome Powell's remarks put mild pressure on the US Dollar. 

EUR/USD News
USD/JPY retreats from weekly highs as FOMC delivers 25 bps rate trim

USD/JPY retreats from weekly highs as FOMC delivers 25 bps rate trim

USD/JPY hovers around 153.80 after the Fed broadly met market expectations on November's rate call. The Fed delivered a follow-up quarter-point cut on Thursday; markets now bet on the odds of a December three-peat. 

USD/JPY News
Gold regains $2,700 with Fed’s announcement

Gold regains $2,700 with Fed’s announcement

Gold extends its recovery following Wednesday's sharp decline and trades above $2,700, as the US Dollar eases following the Federal Reserve's decision to cut rates by 25 bps. Powell's speech revolved around Trump's victory. 

 

Gold News
Ethereum Price Forecast: ETH eyes $3,366 as open interest growth could fuel quest for new all-time high

Ethereum Price Forecast: ETH eyes $3,366 as open interest growth could fuel quest for new all-time high

Ethereum (ETH) is up nearly 8% on Thursday and could reach a new all-time high before year-end following increasing investor demand for the top altcoin. This is visible in ETH's open interest growth and increasing Ethereum exchange-traded funds (ETF) inflows.

Read more
Outlook for the markets under Trump 2.0

Outlook for the markets under Trump 2.0

On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures