Technical Analysis / Page 181

Technical Analysis – CADJPY plummets to new 9-month trough

Posted on December 20, 2022 at 10:34 am GMT

CADJPY is plunging to a fresh nine-month low of 96.68, losing more than 4% in just one session as the Bank of Japan announced an unexpected adjustment to its YCC policy, but maintains it is not tightening. From the technical perspective, the RSI is diving towards the 30 level, while the stochastic is also approaching the oversold zone. Both are moving with strong momentum, confirming the bearish structure. In trend indicators, the 20- and 50-days simple moving averages (SMAs) are [..]

Technical Analysis – AUDJPY tumbles below key support zone of 91.00

Posted on December 20, 2022 at 10:30 am GMT

AUDJPY fell sharply on Tuesday after the BoJ raised the cap on 10-year bond yields. The pair broke below the key support (now turned into resistance) territory of 91.00, which had been stopping it from drifting lower since July. Up until now, AUDJPY is nearly 4.5% lower, which combined with the break below 91.00 suggests that the bears are back in the driver’s seat. The daily oscillators are adding to that narrative by detecting strong bearish momentum. The RSI fell below its [..]

Technical Analysis – EURJPY plummets after BoJ surprises, 200-day SMA caps losses

Posted on December 20, 2022 at 10:14 am GMT

EURJPY had been on a steady short-term recovery before experiencing a massive decline on the back of the BoJ’s latest decision to widen the band of its Yield Curve Control policy. For now, the retreat has come to a halt at the crucial 200-day simple moving average (SMA), but downside pressures persist. The momentum indicators currently suggest that bearish forces are strengthening. Specifically, the MACD histogram has retreated below both zero and its red signal line, while the stochastic oscillator [..]

Technical Analysis – JP225 index slides; momentum indicators keep the door open for further sell-off

Posted on December 20, 2022 at 10:12 am GMT

The JP225 cash index is trading at the lowest level since October 3. Actually, today’s move is the strongest drop and the widest intraday range seen since June 16. From a long-term perspective, using the weekly chart, the picture has not changed dramatically. The JP225 index continues to trade within the 24,682-29,222 range despite some bearish flavour coming from various momentum indicators. Moving back to the daily chart, the acute drop in JP225 has caused the momentum indicators to turn bearish. [..]

Technical Analysis – USDJPY crashes on BoJ surprise tweak

Posted on December 20, 2022 at 9:07 am GMT

USDJPY crashed to a four-month low of 132.26 in the wake of an unexpected hawkish tweak in the BoJ’s yield curve control early on Tuesday. From a technical perspective, the bearish action was the outcome of the rejection near the key descending trendline and the 20-day simple moving average (SMA) at 137.00. With the price tumbling below the 200-day SMA for the first time in almost a year, traders will wait and see whether selling pressures will persist in the coming [..]

Technical Analysis – Will EURCHF emerge above parity soon?

Posted on December 19, 2022 at 3:10 pm GMT

EURCHF has been trading in a consolidative manner lately, staying slightly above the 0.9820 zone, which is near the 50- and 100-day exponential moving averages (EMA). That said, it also remains below the 0.9950 hurdle, which provided resistance between October27 and November 9, and also lies slightly below the 200-day EMA. Despite the pair staging a decent recovery after hitting a record low of 0.9400 on September 26, a break above parity may be needed to reinforce the bullish case. Both [..]

Technical Analysis – USDJPY stands in upward sloping channel in near term

Posted on December 19, 2022 at 9:45 am GMT

USDJPY has been developing within an upward sloping channel since December 2 around the 20- and 50-period simple moving averages (SMAs), which also roughly mark the mid-level of the recent range. However, the technical oscillators are suggesting a neutral-to-bearish momentum. The RSI is ticking slightly lower below the threshold of 50, while the MACD is moving sideways near its trigger and zero lines. A reversal to the downside could stall at the bottom of the channel near the 134.50 support level. Further below, as [..]

Technical Analysis – US 500 index sell off pauses but overall picture mixed

Posted on December 19, 2022 at 9:39 am GMT

The US 500 cash index is edging slightly higher today following a strongly negative week. From the high of 4,138 on Tuesday, December 13, the index dropped more than 300 points to recover today at around 3,865. The fallout from last week’s move appears rather mixed at the moment. On the one hand, the break below the ascending right-angled broadening pattern seems, on face value, negative, but more evidence is needed to brand this breakout as valid. On the other hand, a US 500 index low above [..]

Technical Analysis – EURUSD poised for bullish continuation

Posted on December 19, 2022 at 9:11 am GMT

EURUSD opened the week with positive momentum marginally below the 1.0600 level, having slightly trimmed some of its recent gains as overbought signals appeared on the chart. The RSI keeps fluctuating comfortably above its 50 neutral mark following the pullback below 70, reflecting persisting buying interest, whereas the stochastics and the MACD are looking for a downside reversal, suggesting that some caution is still required. Yet, with the pair maintaining a clear bullish structure in the short-term picture, which recently [..]

Technical Analysis – Gold hovers around 200-day SMA, diverging signals arise

Posted on December 19, 2022 at 8:50 am GMT

Gold had been trading within a descending channel for the most part of 2022 but managed to stage a moderate rebound since early November. Even though bullion has recovered significant ground, its recovery seems to be on hold as the price failed to profoundly surpass the 200-day simple moving average (SMA). The fact that gold is stuck between opposing directional forces is also reinforced by the momentum indicators. Specifically, the RSI remains comfortably above its 50-neutral mark, while the stochastic oscillator is [..]

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