Chart Signals: Bear traps and hammers for JPY pairs

JPY started the week off strong with JPY pairs diving but reversals near round numbers and hammer candles suggests that downward pressure may be peaking with pairs getting washed out and trading bounces starting.

JPY started the week off strong with JPY pairs diving but reversals near round numbers and hammer candles suggests that downward pressure may be peaking with pairs getting washed out and trading bounces starting.

Asia Pacific Indices

Australia 200 remains under distribution, steadily declining from near 5,320 back toward 5,220 while falling RSI confirms downward pressure increasing. Next potential support nar 5,180 a Fibonacci level then 5,100.

Japan 225 remains under pressure with a rebound attempt failing at a lower high near 16,120 and the index falling back down under 16,000 testing 15,960. Next potential support near 15,800. RSI falling away from 50 confirms downward pressure increasing.

Hong Kong 50 has stabilized in the 20,440 to 20,620 range for now after diving down from 20,900 to start the week RSI falling under 50 confirms momentum turning downward. Next potential support near 20,210 a Fibonacci level.

North American and European Indices

US 30 held its 50-day average near 17,780 and 50 on the RSI indicating that its underlying uptrend remains intact through the current correction. Initial rebound resistance possible near 17,880 then the 18,000 round number. Next downside support on a failure near 17,675.

US NDAQ 100 has drifted down toward the 4,430 to 4,460 area after breaking down through 4,500 with next potential support near 4,400. RSI under 50 suggests momentum turning downward and current trading could be a pause within a larger pullback. 

US SPX 500 has found some support near 2,085 but remains below 2,100 with more resistance near 2,112. RSI is holding 50 while the index trades above its 50-day average near 2,076 in whiat still looks like a trading correction within an uptrend.

UK 100 remains under pressure taking out 6,050 and sliding toward a test of the 6,000 round number. RSI has dropped below 40 indicating growing downward pressure.

Germany 30 is selling off again to start the week, diving down from 9,800 into the 9,660 to 9,760 area then staging a second leg down toward 9,600. RSI under 50 and falling confirms downward pressure increasing with next potential support in the 9,520 to 9,560 area. 

Commodities

Gold continues to rally, clearing $1,282 a Fibonacci level and trading near $1.285 with next potential resistance near $1,290 then the $1,300 round number. Rising RSI indicates upward momentum still increasing. Support rises toward $1,278.

Crude Oil WTI has levelled off in the $48.30 to $48.50 area, holding above $48.10 Fibonacci support. RSI approaching 50 indicates overbought conditions easing and a sideways trend emerging. More support possible near $47.20.  

FX

US Dollar Index is holding steady near 94.70 having moved back up above 94.00 last week with resistance looming near the 95.00 round number.

EURUSD found support at a higher low near $1.1235 and has bounced back toward $1.1300 with its rally contained by the 50-day average near $1.1310 so far with next resistance near $1.1400. RSI holding 50 indicates underlying uptrend remains intact.

GBPUSD started the week under pressure falling toward $1.4120 before finding support and bouncing back toward $1.4340 before selling back toward $1.4200. A doji candle suggests a standoff between bulls and bears.

NZDUSD is consolidating in the $0.7040 to $0.7080 area digesting a recent rally above the $0.7000 round number and below $0.7120 resistance.

AUDUSD has stabilized near $0.7390 an ongoing support/resistance level and the top of a saucer bottom while consolidating recent gains. RSI holding 50 indicates emerging uptrend intact for now. Initial resistance at the 50-day average near $0.7450 with next support near $0.7360 then $0.7300.

USDSGD ran into resistance at its 50-day average near $1.3610 and has slumped back again, falling toward the $1.3530 to $1.3560 area with more support possible at the $1.3500 round number. RSI faltering short of 50 confirms downtrend intact.

USDJPY appears to be falling toward a retest of 105.35 support or the 105.00 round number which could end in a big breakdown or a double bottom. Pair has been trading in the 105.70 to 106.50 area with RSI indicates downward momentum still increasing. Initial resistance on a rebound possible near 107.40.

GBPJPY broke 151.45 channel support dipped under 150.00 briefly and then rebounded in what could be a washout between a hammer candle and bear trap just below a round number. It needs to retake 152.00 to signal an upturn. 

EURJPY broke 120.00 briefly and fell to test 119.00 before bouncing back in what may be a bear trap washout. A hammer candle also suggests we could be near a turning point with initial resistance near 120.40 then 120.80.

CADJPY is trading near the bottom of a 82.45 to 84.55 Fibonacci trading channel. RSI stuck below 50 indicates downward pressure unrelenting.