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Chart Signals: Japan 225 rallies as JPY weakens

Japan 225 is breaking out today with Hong Kong 50 also attracting increased interest. Japanese stocks are benefitting from a weakening JPY relative to other majors including USD, EUR, GBP and CAD. Gold and JPY weakness also shows capital continues to flow out of defensive havens as fears of a crisis that had gripped markets early in the year continue to recede.

Asia Pacific Indices

Australia 200 is testing the top of a 5,300 to 5,430 trading range were a breakout would signal the start of a new upleg that could challenge 5,500 or a measured 5,560. Lower highs in the RSI, however, show a negative divergence building which suggest upward momentum may be slowing. Initial support near 5,335.

Japan 225 is breaking out today, clearing 17,000 to signal the start of a new upleg on trend with next resistance possible near 17.165 then 17,425 both Fibonacci levels. RSI climbing up off 50 confirms upward momentum increasing.

Hong Kong 50 has stabilized near 20,620 after shooting up toward 20,730 where resistance emerged. It remains in an uptrend of higher lows above 20,485 with accumulation confirmed by rising RSI momentum.

India 50 encountered some resistance near 8,200, not a surprise after screaming up from 7,750 in just a few days. It has levelled off near 8,170 to digest recent gains with next support near 8,080 a breakout point and Fibonacci level.

North American and European Indices

US 30 is trading up above 17,900 near 17,920 as its new upswing continues. Next potential resistance on trend near the 18,000 round number then 18,080.

US NDAQ 100 keeps attracting support above 4,500 following a breakout, trading just below 4,525 with next resistance possible near 4,570 then 4,595. RSI approaching overbought but confirms upward momentum still increasing.

US SPX 500 is peeking up above 2,100 with next potential resistance near 2,112 then 2,118 both previous highs. Rising RSI confirms upward momentum still increasing.

UK 100 finished last week consolidating recent gains in the 6,250 to 6,275 range with next resistance possible near 6,290. RSI indicates upward momentum levelling off for now.

Germany 30 is holding steady in the 10,280 to 10,340 range consolidating last week’s gains.


Gold held $1,200 round number support and has bounced back toward $1,210 in what looked like a common trading bounce within an ongoing downtrend before sliding back toward $1,205. RSI continues to indicate increasing downward pressure. Next resistance appears near $1,220 then $1,228 with next support on a downturn near $1,993 a Fibonacci level.

Crude Oil WTI continues to bounce around between $48.10 Fibonacci support and $50.00 round number resistance while working off an overbought RSI. Price recently has been bouncing around between $48.80 and $49.30.


US Dollar Index is consolidating Friday’s rally at a higher level near 95.70 having traded up toward 96.00 resistance overnight.

EURUSD held its 200-day average near $1.1111 and has rallied back up toward $1.1145. RSI stabilizing near 40 suggests downward pressure levelling off. Next rebound resistance near $1.1200.

NZDUSD is trying to find some support near $0.6700 but it remains in a downtrend with its last lower high near $0.6770 and next downside support possible at the 200-day average near $0.6655 then $0.6560. RSI under 50 and falling confirms downward pressure increasing.

AUDUSD continues to struggle below its 200-day average near $0.7245 but holding $0.7155 for now with next support on a breakdown near $0.7100.

USDSGD is testing the top of a $1.3715 to $1.3830 trading channel. Next resistance on a breakout possible near $1.3885 then the 200-day average near $1.3970.

USDJPY is breaking out of a downtrend today! Clearing 110.55 a Fibonacci level and advancing on 111.55 before settling back toward 111.10. Next resistance possible near 111.90 a prior high then 113.45 a Fibonacci level. RSI confirms upward momentum accelerating

GBPJPY trading near 162.70 continues to advance on 164.30 the top of an ascending triangle where a breakout would complete a base and signal the start of a new uptrend. RSI above 50 and rising indicates upward momentum increasing.

EURJPY is approaching the top of its 122.00 to 124.00 trading channel and its 50-day average near 124.30 where breakouts would signal the start of a new uptrend. RSI back above 50 signals momentum turning upward. Next resistance on a breakout possible between a measured 126.00 and a prior high near 126.30.

CADJPY is back above 85.00 and testing its 50-day average with next resistance near 86.20. RSI lifting up off 50 signals momentum turning back upward.


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