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Chart Signals: Stocks resume uptrends, JPY retreats

Chart Signals: Stocks resume uptrends, JPY retreats

Today’s upswings across a number of markets indicate that the recent trading corrections in indices have come to an end and that their longer-term uptrends have resumed. Meanwhile, JPY continues to weaken relative to USD and EUR, igniting a recovery rally in the Japan 225.

Asia Pacific Indices

Australia 200 has rallied up off 5,335 a Fibonacci level to retest 5,370 and appears poised for a breakout with next upside resistance on trend near 5,400 then 5,485 a Fibonacci level. RSI getting overbought suggests potential for a pause sometime soon.

Japan 225’s recovery rally continues to accelerate with the index driving up and 16,255 through 16.500, breaking out over the 50-day average and carrying on toward 16,815 a Fibonacci test with next resistance possible at the 17,000 round number. RSI back above 50 confirms momentum upturn.

Hong Kong 50 continues to stabilize above 20,000 in the 20,120 to 20,260 range. RSI flattening out suggests the recent downswing may be subsiding. Next upside test near 20,565.

India 50 has paused in the 7,870 to 7,910 range digesting its recent rebound. Next potential upside test in the 8,000 to 8,080 range between a Fibonacci test and a round number. RSI back above 50 confirms upward momentum has resumed.

North American and European Indices

US 30 has been trending higher through the day rising from a higher low near 17,730 toward 17,900 with next potential resistance near 18,080. RSI swinging back up above 50 confirms momentum turning back upward.

US NDAQ 100 has turned back upward out of a recent correction, driving up off 4,345 higher support toward 4,400 with next potential resistance near 4,415 where the 50 and 200-day averages converge. RSI nearing 50 where a breakout would confirm an upturn in momentum.

US SPX 500 has resumed its primary uptrend following a correction, breaking out of a short-term downtrend through 2,060 and rallying on toward 2,080 with net potential resistance near 2,100. RSI regaining 50 confirms momentum turning upward again.

UK 100 continues to struggle with resistance at its 50 and 200-day averages near 6,200 but is still attracting support above 6,100 with more possible near 6,060 then 6,000. RSI suggests downward pressure levelling off. If the index remains below 6,200 a golden cross attempt could fail.

Germany 30 is bouncing around between 10,000 and 10,100 after an initial burst of enthusiasm encountered more resistance. RSI nearing 50 suggests downward pressure fading as a correction ends and its uptrend resumes.


Gold has stabilized near $1,265 after diving down from $1,290 yesterday. Next support appears at the 50-day average near $1,248. Recently trading between $1,257 and $1,269. RSI falling toward 50 indicates upward momentum fading and a downturn pending.

Crude Oil WTI successfully retested the bottom of a $42.40 to $45.40 trading channel where it has been consolidating recent gains, rallying back up through $43.75 and on toward $44.30. 50 and 200-day averages appear to be on the verge of a golden cross.


US Dollar Index is back above 94.00 as it steadily advances toward the top of a 92.00 to 95.00 trading range. Initial resistance appears near 94.30 then 94.65.

EURUSD remains in retreat, sliding back under $1.1400 which has become lower resistance toward $1.1360 with next potential support near $1.310 then the 50-day average near $1.1270. RSI nearing 50 suggests momentum may be turning downward.

NZDUSD remain under pressure, falling into the $0.6740 to $0.6770 range confirming a recent breakdown below $0.6800. Next potential support near $0.6665 then the 200-day average near $0.6635.

AUDUSD has started to rebound having established support near $0.7300 above its 200-day average near $0.7260. The pair has traded up into the $0.7340 to $0.7370 area with next potential resistance near $0.7390 then $0.7465.

USDCNH has advanced up into the 6.5350 to 6.5450 range confirming yesterday’s breakout over 6.5285 out of a channel and through Fibonacci resistance which may become new support. RSI getting overbought suggests a pause or correction possible in the near term. Next resistance near 6.5590 a prior high.

USDSGD has levelled off in the $1.3680 to $1.3710 area as it digests yesterday’s breakout at a higher level. RSI above 50 confirms the upturn. Next potential resistance near $1.3745 then $1.3885.

USDJPY continues to rally, driving up through 109.00 with next resistance possible in the 110.00 to 111.00 range where a round number, Fibonacci test and the 50-day average cluster. RSI back testing 50 where a breakout would confirm an upturn in momentum.

EURJPY continues to rebound climbing up though 124.00 and driving on toward 124.40 with next upside tests at the 50-day average near 124.65 then 125.00 and 126.20. RSI back above 50 confirms momentum turning back upward.

CADJPY is bumping up against 84.55 a Fibonacci level with next potential resistance near the 50-day average near 85.25 then 86.20. RSI indicates downward pressure easing and confirmation of an upturn pending.

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