Bearish Reversal Imminent For USD/JPY Pair?

• 13 Feb 2019

 

USD/JPY

 

The USD/JPY pair has retraced back towards the 61.8 Fibo level which may represent an area for a potential bearish reversal. However, momentum indicators represent bullish sentiment with MACD breaking the zero line to the upside.

 

 

 

 

 

EUR/USD

 

The EUR/USD pair touched and rebounded from the 1.129 price level as buyers returned to the pair keeping this price level intact as a strong support area. It is likely that the pair will remain within the 1.129 and 1.145 trading range. Momentum indicators are mixed with RSI reversing a previous bearish trajectory and MACD remaining in negative territory. However, MACD is a lagging indicator.

 

 

 

 
 GBP/USD

 

The GBP/USD pair has broken the 1.292 price level, the ascending trendline provides the next plausible support level, however, buyers have returned after the break. Despite rising price action, momentum indicators have a bearish bias and selling volume has risen.

 

 

 

 

USD/CHF

 

A bearish reversal seems likely as the pair approaches the 1.010 price level where price action has rebounded on previous occasions. Each test of this price level in recent trading has resulted in rising selling pressure. At the same time, RSI has reached overbought conditions. 

 

 

 

 

 

USD/CAD

 

The USD/CAD pair has entered into a symmetrical triangle with progressively higher lows and lower highs. Generally speaking this results in a breakout and represents a continuation pattern of a previous bullish trend. Momentum indicators are turning more bullish.

 

 

 

SILVER

 

Silver continues to test the 15.69 price level yet the metal has been unable to break the former resistance line despite rising selling volume. Momentum indicators reflect the bearish sentiment with RSI developing a downward trajectory and MACD approaching the zero line.

 

 

 

 

 

GOLD

 

Gold has broken the 1303.94 price level, yet there is still no strong conviction from buyers to drive price action higher. The metal will likely bounce along this price level as momentum indicators remain subdued although support bullish sentiment. 

 

 

 

 

OIL

 

WTI buyers have returned with moderate bullish moves to take WTI beyond $50 per barrel. A former support area at 55.74 price level will be a target for buyers. Tight trading conditions are reflected in flattening volume and small- bodied candlesticks.