Has The USD/JPY Pair Reached A Ceiling?

  • 14 Jan 2020


The USD/JPY pair has pushed beyond the 109.61 price level to now test the 110.19 resistance line. Selling pressure has risen at this resistance line which may suggest that buyers are losing steam. Momentum indicators are bullish with MACD breaking the zero line to the upside and RSI approaching overbought territory. 






The Eurodollar pull back was short-lived with price action breaking the 1.112 support level to the upside. The recovery follows the long-term uptrend which should result in price action heading towards the 1.116 resistance level. Momentum indicators are languishing in bullish territory. 




The GBP/USD pair has broken the ascending trendline to the downside, with the pair heading towards the 1.295 price level, once more. The break is significant as the trendline represents a longer-term uptrend which has long acted as a support level for the pair. Further, the 1.295 support level has resulted in reversals on previous occasions. Momentum indicators support bearish sentiment. 





The USD/CHF reversal has stalled after clearing the 0.971 resistance level. A long legged doji candles signals further bearish sentiment. However,  series of small-bodied candles in recent trading could indicate indecision from traders. The 0.968 support level is being tested once again. Momentum indicators have stalled in bearish territory.  





The USD/CAD pair has begun to climb, moving through a series of resistance levels despite selling pressure. A test of the 1.311 resistance level resulted in a pullback, with a series of small-bodied candles indicating a lack of conviction from buyers and sellers. Momentum indicators have bullish trajectories. 





Silver sellers have returned taking price action back towards the 17.73 support level. Price action has been following a moderate downtrend since August 2019. Sentiment has begun to turn bearish after the recent rally. Momentum indicators have sharp bearish trajectories and are pulling back from overbought conditions.   





Gold sellers have returned to the metal and price action has now broken the 1552 support level and price action is heading towards the 1531.98 support level. It appears the metal is moving back towards a longer-term trading range and a previous moderate downtrend, which came about by a lack of serious geopolitical risk and low inflation pressure. Momentum indicators are returning from strongly overbought conditions. 





WTI price action has recovered almost all of the gains from the recent unrest in the Middle East. Price action continues to fall towards the ascending trendline where bullish rebounds tend to take place. A break of the 57.96 support level would make this outcome more likely. A stabilizing price for the oil market is at $60 per barrel. Momentum indicators have bearish trajectories.


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