Risk Off Sentiment Sees The Yen Rally

• 2 Jan 2019

USD/JPY

 

 

The USD/JPY pair has broken the 109.87 support level to the downside which appears to have motivated buyers to return. The next key support area for the pair is the 109.26 price level. Momentum indicators are bearish but appear to be stalling as sentiment appears to be turning less bearish.

 

   

 

 

EUR/USD

 

 

The EUR/USD pair has broken the 1.145 price level though the break is not complete. The next target for buyers is the 1.153 price level. Momentum indicators have turned sharply bullish with MACD breaking the zero line. 

 

 
 
 
 GBP/USD

 

 

The GBP/USD pair has broken the 1.269 price level and despite the break, selling pressure has risen. A key resistance area for the pair lies at the 1.292 price level. Momentum indicators have an upward trajectory with MACD approaching the zero line. Volume has been declining, however, which coupled with price action may suggest that the bullish sentiment will be short-lived.

 

 

 

 

USD/CHF

 

The USD/CHF pair has bounced back from the 0.978 price level and is once again moving back towards the 0.986 resistance level, which has represented a key support area for the pair in recent trading. Momentum indicators are neutral if slightly bearish with RSI bouncing back from the 30 support level.

 

 

 

 

USD/CAD

 

 

The USD/CAD pair continues to climb away from the ascending trendline which has developed as a clear support line for the pair. Momentum indicators remain bullish; with MACD extending its position into bullish territory and RSI breaking the 70 resistance level. 

 

 

 

SILVER

 

Silver has stalled before reaching the 15.69 price level as bullish momentum begins to slow. Volume has also begun to decline which may suggest waning appetite from buyers. Momentum indicators also reflect the change in sentiment with RSI testing the 70 resistance line to the downside. 

 

 

 

 

GOLD

 

 

Gold has broken a long-term resistance area at the 1258.20 price level and is now approaching a price high of 1303.94. Whether price action is able to reach this resistance area remains to be seen as momentum appears to be waning. RSI has also flattened at the 70 resistance area. 

 

 

 

 

OIL

 

 

Oil’s recovery was short-lived as WTI begins to level out around the 45.62 price level. Momentum indicators have begun a moderate bullish reversal, however; with volume declining, buyers may lack the conviction to push price action higher.