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Chart Signals: JPY under pressure while WTI and GBP bounce back

Indices had a mixed performance Friday following the nonfarm payrolls report, but WTI staged a strong rebound which also helped CAD to turn around. JPY remains under pressure relative to USD, EUR, GBP and CAD as traders speculate the Bank of Japan may need to bring in new stimulus. Falling demand for safe havens may also be dragging on the Yen as Brexit fears fade and GBP bounces back. AUD has also started to pick up again from recent weakness along with gold while NZD and SGD have been choppy.

Asia Pacific indices

Australia 200 finished last week near 5,385 support after a breakdown attempt failed Friday with support coming in near 5,350. While 5,335 a Fibonacci level may be tested in time, an oversold RSI suggests potential for a trading bounce in the near term, perhaps back toward 5,425.   

Hong Kong 50 broke out of a trading channel Friday, rallying toward a test of 23,410 a Fibonacci level followed by a measured 23,770 based on a recent sideways channel. Support rises toward the 23,220 breakout point. RSI confirms upward momentum increasing.

Japan 225 is breaking out of a downtrend, blasting through its 200-day average near 16,840 up through 17,000 and on toward 17,160 with support rising toward 17,080. RSI confirms uptrend accelerating. Next resistance possible near 17,255 then 17,425 a Fibonacci level.


North American and European Indices

US 30 is still attracting support above its 50-day average near 18,360, recently trading near 18,470. Signals are mixed with lower highs suggesting distribution but RSI bouncing around 50 signalling consolidation. Next resistance near 18,455 then 18,580 with next support near 18,300 then 18,260. .

US NDAQ 100 is still sitting just below 4,800 with initial support near 4,775 as it trades within a 4,740 to 4,835 sideways range below a double top.  

US SPX 500 held above its 50-day average near 2,150 and has bounced back toward 2,175 but faces resistance near 2,190. RSI holding 50 indicates underlying uptrend intact but a downturn pending. Next downside support possible near 2,125 a former resistance level.

UK 100 has bounced back up above 6,800 and popped toward a retest of 6,925 resistance which could end in a breakout or a double top with next resistance possible at the 7,000 round number. RSI rallying up off 50 indicates underlying uptrend resuming.

Germany 30 is starting to advance again, climbing up from near 10,500 toward 10,700 with net potential resistance at its previous high near 10,880. Support rises toward 10,660 from 10,560.



Gold has rallied up off support in the $1,290-$1,300 zone which contains a Fibonacci cluster and a round number toward a test of initial resistance at its 50-day average near $1,326 followed by $1,345. RSI suggests downward pressure fading.  

Crude Oil WTI has a strong turnaround underway after establishing support near $42.50, blasting back up toward $44.30 with initial support rising toward $43.90. Resistance remains in place near $45.00 where a round number, Fibonacci level, and the 50-day average converge around the midpoint of a $40.00-$50.00 trading range.   



US Dollar Index has stabilized near 95.75 after dropping down from 96.40 and through 96.00 Thursday. RSI holding 50 indicates underlying uptrend remains intact. Initial support possible near 95.50 then 95.00.

EURUSD tried to break out over $1.1200 but failed dropping back from a lower high near $1.1240 back toward $1.1160 with support at $1.1125 near its 50 and 200-day moving averages. RSI stuck just under 50 signals a flat to downward trend.

GBPUSD continues to form an ascending triangle base below $1.3315 a 23% retracement of the post Brexit selloff. RSI back above 50 indicates accumulation momentum increasing. Recently trading in the $1.3150 to $1.3280 range. Next resistance on a breakout near $1.3380 with next support possible near $1.3140 and the 50-day average.

NZDUSD is sending mixed signals. Another run at $0.7370 resistance failed with the pair dropping back into the $0.7270 to $0.7300 area, but RSI continues to hold above 50 keeping underlying upward momentum intact and the pair continues to form an ascending triangle.

AUDUSD continues to bounce back from a successful test of $0.7500 round number support, climbing into the $0.7540 to $0.7580 area with next potential resistance near $0.7610 which it needs to clear to call off a recent breakdown.  

USDSGD held support above the $1.3500 round number and its 50-day average, bouncing back toward $1.3600 with support moving up toward $1.3585 and resistance in place near $1.3645.  

USDJPY is challenging a long-term downtrend resistance near 104.25 having rallied up from 103.40 with next potential resistance near the 105.00 round number and 105.15 a Fibonacci level. Support rises toward 103.90. RSI suggests upward momentum increasing.

GBPJPY continues to climb, building on its recent breakout over 135.95 advancing on 138,40. RSI confirms upward momentum accelerating with next potential resistance near 139.40 then the 140.00 round number and 140.55 a 38% retracement of the post-Brexit selloff.

EURJPY continues to rally up out of a saucer bottom, building on its breakout over 115.00 by heading toward the 115.90 to 116.40 area with next potential resistance near 117.00 then 118.35. Rising RSI confirms upward momentum increasing.

CADJPY has a big breakout underway! Blasting through its 50-day average near 79.00 and rallying to test 80.00 a round number and Fibonacci level. Next potential resistance appears near 80.80 on trend.  

USDCAD has rolled over again, falling from $1.31350 down below the key $1.3000 level where a round number, Fibonacci test and the 50-day average all cluster, to signal the start of a new downswing with next potential support near $1.2900. 

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