A Bullish Break Imminent For USD/JPY?

• 23 Jun 2021

USD/JPY

USDJPY continues to test the 110.69 resistance line which is the upper bound of an ascending triangle pattern. A few oscillations are likely to be squeezed in before an anticipated bullish breakout. Momentum indicators are bullish with upward trajectories.

 

 

 

 

GBP/USD

The GBPUSD pair has stalled in no man’s land between the 1.380 and 1.399 price levels. Buying pressure remains, yet conviction isn’t currently strong enough to resume the rally. Momentum indicators remain in bearish territory after rebounding from oversold conditions.

 

 

 

 

EURUSD

The Eurodollar has found support at the 1.184 price level with the pair moving back towards the range high at the 1.198 price line. Buyers’ conviction will be tested given that fundamental factors favour bears. Momentum indicators are undergoing bullish rebounds.

 

 

 

 

USDCHF

The USDCHF pair has rejected the 0.922 resistance line which represents a previous support area. Buyers remain active in early trading and therefore another test may be on the cards. The current trading range may prove to be consolidative. Momentum indicators suggest the pair is overbought.

 

 

 

 

EURUSD

The 1.241 price line break was short-lived as heavy selling pressure has seen price action return to a previous consolidation range. Moves in the pair reflect moves in oil markets and as such, bearish sentiment continues as buyers favour oil. Momentum indicators have downward trajectories.

 

 

 

 

XAUUSD

XAUUSD is beginning to trace the ascending trendline upwards as a more moderate rally may be underway. The recent sell-off appears currently to be giving way to bullish sentiment. Bullish conviction remains low. Momentum indicators suggest the metal is oversold.

 

 

 

 

US500

The US500 is testing the 4256 resistance area once again, as the previous retracement inspired buyers to return. Given the number of tests and the long-term nature of the rally, a break seems inevitable. Momentum indicators are bullish with further upside potential.