A Bearish Reversal Underway For USD/JPY Pair?

• 21 Jan 2020

USD/JPY

The USD/JPY pair continues to test the 110.19 resistance line despite a doji candle forming, which is perhaps the first signal of a potential reversal for the pair. Sellers have returned to the pair in early Asian trading which may be the momentum needed to drive the trend change. RSI is pulling away overbought conditions whilst MACD has flattened in bullish territory.  

 

     

 

 

EUR/USD

The Eurodollar has once again pulled back to the ascending trendline with a strong bearish move in recent trading. A bullish rebound seems likely given that buyers have tended to return at this support level on previous occasions. Currently price action has stalled at this support level. Momentum indicators are bearish. 

 

 

GBP/USD

The GBP/USD pair has been trending in recent trading with neither buyers nor sellers driving price action. The pair seems likely to remain in a tight trading range between the 1.295 and 1.309 price levels, with the 1.295 support area holding strong on previous occasions. Momentum indicators have downward trajectories with MACD testing the zero line.

 

 

 

USD/CHF

The USD/CHF pair is attempting another recovery after a long legged doji candle signaled a bullish reversal for the pair. Several tests of the 0.968 resistance line have failed to result in a break therefore price action may continue trending in the near-term. Bullish momentum reversals appear to be underway, albeit at a moderate pace.  

 

 

 

USD/CAD

The USD/CAD pair has failed to move beyond the 1.304 resistance area. A test of the 1.311 resistance area has resulted in rising selling pressure. Without any key developments in oil markets, the pair may remain in the 1.302- 1.311 trading range. Momentum indicators have upward trajectories, yet remain in bearish territory. 

 

 

 

SILVER

Silver has returned to a previous trading range between the 16.55 and 18.09 price levels. However, price action continues to test the 18.09 resistance area without a break. A narrowing of oscillations and rising doji candles may represent a build up before a breakout. Momentum indicators have flattened in bullish territory. 

 

 

 

GOLD

Gold has begun to move away from the 1552 support level and is now approaching a recent high at the 1574.28 resistance area. The metal has generally fallen back from this resistance area on previous occasions and despite spikes higher during the trading session, price has not closed beyond this price level. Momentum indicators are pulling back from strongly overbought conditions. 

 

 

 

OIL

The WTI rally has not moved beyond the 59.18 resistance area, with sellers returning at this price level to take the commodity back towards the ascending trendline. A bullish rebound normally takes place at this ascending trendline as the longer-term uptrend remains intact. Momentum indicators are bearish; with MACD breaking the zero line to the downside and RSI dropping in to the sell channel.