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Chart Signals: Asia indices start to recover while JPY retreats

Chart Signals: Asia indices start to recover while JPY retreats

The base building patterns that had emerged lately in Europe and North America are now starting to appear in Asia Pacific indices as well. Japan 225 has been forming an ascending triangle base while the Hong Kong 50 appears close to completing a head and shoulders bottom. Meanwhile JPY has started a broad based retreat, not just against the surging USD but also against EUR and CAD.

Asia Pacific indices

Australia 200 has drifted back toward the middle of it 4,700 to 5,050 trading channel, recently drifting back between 4,880 and 4,920 with more support near 4,830 and resistance near 4,945. RSI slipping back under 50 suggest a downdraft underway.

Hong Kong 50 is back above 19,000 and appears to have completed the right shoulder of a head and shoulders base having bounced up off of 18,790. RSI back above 50 and trending upward indicates renewed accumulation. Currently trading between 19,360 and 19,500, neckline and Fibonacci resistance appears near 19,710 followed by the 10,000 round number and 20,210.

India 50 is bouncing around between 6,950 and 7,050 around the 7,000 round number and just below 7,055 a Fibonacci test. Higher lows in the index and RSI suggest it may be bottoming but has more work to do.

Japan 225 is attempting to break out of a 16,540 to 16,374 trading range where it has been base building in recent weeks. Next potential resistance appears near 16,790 a 38% retracement of its recent downtrend followed by the 18,000 round number. RSI approaching 50 where a breakout would confirm an upturn in momentum.

North American and European Indices

US 30 continues to advance driving up to test 16,835 Fibonacci resistance at one point before sliding back into the 16,620 to 16,740 range, still a higher low on trend confirming on going accumulation. RSI above 50 and rising confirms upward momentum accelerating.

US NDAQ 100 broke out Friday, clearing 4,225 a Fibonacci level and rallying toward 4,290 before dropping back to successfully retest its breakout point as new support. Next potential resistance near 4,345. RSI lifting off 50 confirms momentum turning upward.

US SPX 500 keeps trending higher, building on its breakout over 1,940 and out of a classic W double bottom base pattern, which has become support. Initial resistance has emerged near 1,970 with more possible near 1,976 a Fibonacci test then 1,990. RSI confirms growing upward momentum.

Germany 30 tested the top of its 9,000 to 9,600 sideways trading range but ran into resistance and has dropped back a bit into the 9,470 to 9,550 area. Support moving up to there from 9,325 indicates continued accumulation. RSI testing 50 where a breakout would confirm an upturn.

UK 100 is testing the top of its 5,500 to 6,100 trading range with support moving up toward 6,060 from 6,000. RSI above 50 and rising indicates growing upward momentum. Net potential resistance on a breakout near 6,15 then 6,310 both previous highs.


Gold is coming off a volatile Friday that saw it plunge from $1,240 toward $1,210 and then back up into the $1,222 to $1,226 area all within its current sideways trend keeping the symmetrical triangle consolidation pattern which has been extended going. RSI under 70 and sliding indicates a trading correction underway as upward momentum fades. .

Crude Oil WTI continues to form an ascending triangle base finding support at another higher low near $30.90 after running into resistance near $32.40 the top of the pattern. RSI near 50 with higher lows indicates momentum turning from neutral to positive.

Copper is testing $2.12 the neckline of a head and shoulders base. A breakout would signal the start of a new recovery trend that could drive into the $2.22 to $2.24 range between a 23% Fibonacci retracement and measured resistance. RSI above 50 and trending higher indicates growing upward momentum. Support moves up toward $2.08.


US Dollar Index is climbing once again, breaking out over 98.00 and testing its 50-day average near 98.10 with next upside resistance near 99.00 then 99.70. RSI rising up off 50 confirms an upturn in momentum.

EURUSD is breaking down having taken out both $1.1000 and $1.0970 Friday on its way down into the $1.0920 to $1.0940 area with next downside support near $1.0880 then $1.0790 a Fibonacci level. RSI falling away from 50 indicates downward pressure increasing again.

NZDUSD peeked above the top of its $0.6560 to $0.6730 trading channel but failed to hold above it and has dropped back into the $0.6620 to $0.6660 zone. Another higher low on trend, however, indicates continued underlying accumulation.

AUDUSD fell back Friday from $0.7210 toward $0.7130 but with trend and 50-day average support holding, an ascending triangle base continues to form. RSI testing 50 where a breakdown would signal a downturn with next potential support near $0.7000. Upside resistance still in place near $07300 and the 200-day average.

USDCNH keeps trending toward the top of its 6.5000 to 6.5500 trading range bouncing up from 6.5370 toward 6.5440. RSI advancing on 50 suggest an upturn pending. Next resistance on a breakout possible at the 50-day average near 6.5780.

USDJPY has jumped up into the upper half of its 111.00 to 115.00 emerging channel trading between 113.40 and 114.00 just below the 23% retracement of its previous downtrend. RSI still above 20 and rising indicates downward pressure weakening.

EURJPY continues its trading rebound, rallying up off 124.00 a higher low toward 124.60 with net potential resistance looming near the 125.00 round number then 126.15 an old support level. RSI back above 30 from oversold confirms an upward correction underway with downward pressure easing.

CADJPY broke out from a downtrend Friday clearing 84.00 and its 50-day average while RSI breaking out over 50 confirmed the upturn. Next potential resistance tests near 84.55 a 38% retracement of the recent downtrend then the 85.00 round number.

USDSGD continues to trend sideways between $1.3980 and $1.4120. RSI suggests momentum changing from downward to neutral. Next support at the 200-day average near $1.3945 with next resistance at the 50-day average near $1.4180.

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