In Swissquote’s Thursday short term technical trading report, the research team outlines the major technical levels of popular currency instruments with forecasts, below is the outline for USD/JPY and Gold. To view and download the entire report, click here (PDF).
USDJPY: Pushing higher
• USD/JPY has confirmed its underlying uptrend by making new highs. The short-term technical structure is positive as long as the support at 107.39 (12/09/2014 high) holds. Another hourly support can be found at 106.81 (16/09/2014 low).
• A long-term bullish bias is favoured as long as the key support 100.76 (04/02/2014 low) holds. The break to the upside out of the consolidation phase between 100.76 (04/02/2014 low) and 103.02 has resumed the underlying bullish trend. A test of the major resistance at 110.66 (15/08/2008 high) is expected. Another resistance can be found at 114.66 (27/12/2007 high).
Gold: Drifting lower
• Gold has broken the support at 1240, confirming an underlying bearish momentum. The support at 1219 (08/01/2014 low) is challenged. Hourly resistances can be found at 1243 (16/09/2014 high) and 1258 (09/09/2014 high).
• In the long-term, we are sceptical that the horizontal range between the strong support at 1181 (28/06/2013 low) and the major resistance at 1434 (30/08/2013 high) is a long-term bullish reversal pattern. As a result, a decline towards the low of this range is eventually favoured. The recent break to the downside out of the symmetrical triangle confirms this scenario.
