USDJPY at Upper Trend Line. Gold’s Bull Run Continuing?

Welcome to this week’s Market Blast Technicals where we will look at USDCNH, Gold (XAUUSD), EURUSD, and USDJPY.

Yesterday, in our Fundamentals video we promised to take a look at the USD pairs from a technical perspective.

Our Stochastic Oscillators on the Daily charts might be telling us that the recent strength of USD might be coming to an end.

USDJPY for example, has just hit the upper trend line and stochastics are  showing Overbought.

If we add an indicator like Bollinger Bands, we add one more level of confirmation that a reversal might be coming.

We see a similar situation on pairs like EURUSD but we need to wait for further confirmation to see if the bull run continues.

Regarding Gold, last week we pointed out this key level of resistance, and a potential reversal to the downside, and it happened.

Today, price action has bounced off the 38.2% Fibonacci level of support and the Stochastic Oscillator is about to cross from an Oversold signal.

During the last week we saw fundamental strength on the USD and fundamental weakness in Renmimbi but on the technical side, watch this upper trend line and stochastics approaching Overbought.

If we add an indicator like RSI, we can see weakness for the entire period of this bear run which started in May of this year.

If you want to learn more about oscillators like MACD, RSI and Stochastics, don’t forget to register for our Webinar next week on the 18th of January.

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That’s all for now.  Happy trading with Valutrades and we will see you later in the week with our Trading Tips video.

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