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Chart Signals: Big breakout day for JPY

Chart Signals: Big breakout day for JPY

JPY has come back into favour in a big way breaking out against USD and CAD today and ripping the rug out from under the Japan 225. AUD and NZD, have been weakening along with indices in Hong Kong, Australia and the US as capital flows back into defensive havens from risk markets.

Asia Pacific Indices

Australia 200 retested 5,000 as new resistance confirming yesterday’s breakdown and continues to head south dropping toward 4,900 with next support after that near 4,840. RSI nearing oversold territory indicates selloff may be going too far too fast.

Japan 225 has taken another plunge, taking out 16,000 and diving into the 15,550 to 15,630 area with next support in the 15,400 to 15,500 area near previous lows.  RSI indicates downward momentum increasing.

Hong Kong 50 appears to be breaking down with the index falling under 20,200 a Fibonacci level confirmed by the RSI dropping back under 50, The index remains above the 20,000 round number but if that gives way, a Fibonacci cluster near 19,695 could be tested.

India 50 has turned downward again diving toward 7,570 after faltering short of 7,750 again. RSI testing 50 where a break would confirm the start of a new downturn with next potential support between 7,500 and 7,515 a Fibonacci level.

North American and European Indices

US 30 has fallen back under 17,670, calling off its recent breakout and signalling the start of a correction, confirmed by RSI back under 70 and falling. The index has dropped into the 17,590 to 17,660 area with next potential downside support near 17,560 then 17,440.

US NDAQ 100 is rolling over today, falling back under 4,500 a round number and Fibonacci level to signal the start of a pullback which could retest its 200-day average near 4,415 or a recent low near 4,375. Initial support has emerged in the 4,465 to 4,485 area.

US SPX 500 has turned back down under 2,060 causing its recent breakout to fail. RSI falling away from 70 confirms a correction underway. The index has dropped back toward the 2,045 with next potential support near 2,040 then 2,015 near the 200-day MA and a Fibonacci test.

UK 100 has drifted back under 6,100 and back toward 6,080 as it trades in a 6,020 to 6,250 zone between its 50 and 200-day averages. RSI breaking down below 50, however, suggests the potential for further declines with next support on a breakdown near 6,000 then 5,920.

Germany 30 continues to tumble, falling from near 9,800 back into the 9,530 to 9,590 area with next potential support near 9,400 which had been the right shoulder of a head and shoulders base. RSI under 50 and falling indicates downward momentum still accelerating.


Gold is bouncing back today, rallying up off its 200-day average near $1,214 toward $1,234 before settling back toward $1,228 a Fibonacci level. With RSI sitting on 50, s sideways trend between $1,205 and $1,245 appears to be emerging

Crude Oil WTI stabilized between $34.60 and $35.00 range then popped to the top of a Fibonacci trading channel near $35.35. Next potential resistance on a breakout near $36.40 then $38.50 with support rising toward $35.00.


US Dollar Index continues to bounce around between 94.30 and 95.00. It really needs to clear 95.20 to call off its current downtrend.

EURUSD continues to run into resistance hear $1.1400 dropping back into the $1.1360 to $1.1390 area with next potential support near $1.1310 and $1.1255 both Fibonacci levels. RSI rolling down from 50 suggests a correction starting.

NZDUSD continues to roll over, taking out $0.6830 and dropping toward $0.6785 with next potential support at the 50-day average near $0.6695.

AUDUSD has dropped back toward $0.7500 round number support while RSI tests 560 from above. A break of either level would signal the start of a new downtrend  with next support possible near $0.7390 a former resistance level then the 50-day average near $0.7325.

USDCNH continues to rebound up off 6.4656, clearing 6.4800 a Fibonacci level with next potential resistance near the 6.5000 round number then 6.5285. RSI indicates downward pressure fading.

USDSGD continues to rebound, advancing on the $1.3560 to $1.3580 range up from $1.3500 with next potential resistance near $1.3600 then $1.3750 its previous lower high. RSI indicates downward pressure easing.

USDJPY has a major breakdown underway today, taking out 111.00 former channel support to signal the start of a new downleg with resistance then testing the 110.00 round number which held so far then bouncing back toward 110.50. Next potential downside test near a measured 109.25. RSI under 50 and falling confirms downward pressure increasing.

EURJPY keeps driving back down, taking out 126.20 and falling toward the 125.50 to 125.80 area with next potential support near 125.25 then 125.00 and 124.00. RSI falling under 50 confirms momentum turning downward.

CADJPY is breaking down today, taking out 84.55 a Fibonacci level near the 50-day average and falling toward 83.60 with next potential support near 82.45. RSI falling under 50 confirms a downturn underway.

USDCAD continues its trading bounce climbing up from a higher low near $1.3070 toward $1.3180 with next potential resistance near $1.3210. RSI testing 50 where a breakout would confirm an upturn in momentum.


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