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Chart Signals: JPY weakens while indices gain support at higher levels

Chart Signals: JPY weakens while indices gain support at higher levels

JPY pairs have been climbing meaning that JPY has been weakening heading into today’s Bank of Japan meeting. It’s hard to tell how much of that is speculation on more stimulus and how much is formerly defensive capital moving back out into risk markets. Indices still appear to be base building with higher lows indicating increased accumulation.

Asia Pacific Indices

Australia 200 continues to attract support above 4,900 and is bumping up against 5,000 on the index and 50 on the RSI where breakouts would signal the start of a new uptrend with next potential resistance near 5,045 then 5,145.

Japan 225 is consolidating above 17,000 following a breakout trading near 17,100 with next potential resistance near 17.270 then 17.400 and more support near 16.900. RSI climbing toward 50 indicates downward pressure easing.

Hong Kong 50 is clinging to 19,000 support trading between 19,100 and 19,350 within a broad 18,600 to 19,490 trading channel where it has been trying to regain its footing after a big selloff. RSI suggests oversold conditions easing but so far this still looks like a pause within a bigger downtrend.

India 50 is stabilizing near 7,400 having bounced up off of 7,220, but it really needs to clear 7,515 to signal the start of a new uptrend.


North American and European Indices

US 30 is bouncing around between 15,860 and 16,140 bouncing around the 16,000 to 16,030 area which contains a round number and a Fibonacci test. The index has rallied up toward the high end of the range in the afternoon climbing up off a double bottom near 15,980.

US NDAQ 100 continues to struggle with 4,195 Fibonacci resistance but also continues to find support at higher levels indicating growing accumulation with current support near 4,160 up from 4,140.

US SPX 500 is bouncing around in the 1,880 to 1,910 area within a wider 1,855 to 1,915 range where it has been digesting its initial recovery rally with next upside resistance possible near 1,940.

Germany 30 continues to digest recent gains trading in the 9,600 to 9,690 range, with next upside resistance near 9,780 then the 10,000 to 10,045 area near a round number and Fibonacci level.

UK 100 has been taking another run at 6,000 on the index and 50 on the RSI where breakouts would confirm the start of a new uptrend. Resistance has held so far but support continues to rise, moving up into the 5,930 to 5,960 area from 5,855, a sign of renewed underlying accumulation.


Gold has pulled back into the $1,113 to $1,117 range after encountering resistance near $1,128 in what looks like normal backing and filling following the big advance of the previous three days. More support possible near $1,110 with initial resistance near $1,122.

Crude Oil WTI is on the move upward once again, advancing up through $31.00 and challenging $32.30 where a breakout would complete a rounded bottom with initial resistance near $32.70 then $35.00 on a breakout. The price failing to remain below $30.00 again overnight a sign of growing support. RSI clearing 50 confirms an upturn in momentum and the start of a new uptrend.


US Dollar Index continues to fall within its 98.20 to 99.60 trading range with the index falling under 99.00 toward 98.50 and the RSI dipping under 50 suggesting momentum starting to turn downward. Next potential support on a breakdown near 97.30.

EURUSD continues to swing upward within its $1.0800 to $1.1100 trading channel clearing $1.0900 and testing $1.0970 a Fibonacci level. RSI rising up off 50 indicates upward momentum accelerating. Next resistance on a breakout near $1.1445 and the 50-day average.

NZDUSD failed to hold above $0.6500 on a retest rally, confirming yesterday’s breakdown. The pair has dropped back into the $0.6450 to $0.6480 area with next support possible near $0.6400 then $0.6325.

AUDUSD is breaking out of a saucer bottom today rallying up off of the $0.7000 round number toward $0.7130 before settling back toward $0.7080 in normal backing and filling. RSI clearing 50 confirms momentum turning upward with next potential resistance near $0.7220.

USDCNH is starting to creep up off of 6.6090 a Fibonacci level confirmed by RSI slowly rising up off of 50. Currently trading near 6.6170 with next potential resistance near 6.6280.

USDJPY is testing resistance at 119.00 on the pair and 50 on the RSI where breakouts would signal the start of a new uptrend with next resistance near 120.00 but a failure would confirm its downtrend continues and kick off a downdraft that could retest 117.60 or even 116.50.

EURJPY is breaking out again today, clearing 130.00 after retesting 129.00 as support following a breakout there. Next potential resistance at the 50-day average near 130.55 followed by a prior high near 132.00. RSI above 50 and rising confirms upward momentum increasing.

CADJPY continues to rebound, with support rising toward 84.00 while the pair tests 84.55 a 23% retracement of its recent downtrend with next potential resistance near 85.30 then 86.20. RSI clearing 50 confirms momentum turning upward.

USDSGD is holding in the $1.4230 to $1.4280 range while RSI tests 50 where a breakdown would signal a downturn in momentum. Next potential support at the 50-day average near $1.4180.


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