A Bullish Breakout Imminent For JP225?

• 12 Nov 2021

USD/JPY

The USDJPY will make another test of the 114.38 price ceiling as bullish sentiment has been on the rise. Buying activity has been waning in recent trading which casts doubt that there is enough conviction to drive the break. The current consolidation channel is likely to remain intact. 

GBP/USD

The GBPUSD pair continues to float lower, from a lack of buying interest more so than any real bearish conviction. A longer-term downtrend is well-established yet,  momentum indicators suggest the pair has reached oversold conditions. 

EURUSD

The EURUSD has broken through the lower bound of a descending triangle and price action has continued the trajectory albeit at a more moderate pace. Momentum indicators suggest that there is further downside potential, although are fast approaching oversold conditions.  

USDCHF

The USDCHF pair is testing the 0.922 resistance line as the pair has found strong support in recent trading, after a period of consolidation. This resistance zone has proven to be an obstacle in the past for buyers, therefore strong conviction will be required to break the current trading range.     

XAUUSD

The XAUUSD has touched and is fast approaching the 1869 resistance line which represents  previous support level. Bullish momentum does appear to be waning and this is confirmed by RSI fast approaching overbought levels. A pullback may be on the cards.  

JP225

The JP225 index has entered into a symmetrical triangle pattern where, given the trajectory of price action, a bullish breakout may be on the cards. Higher highs and higher lows suggest the index has a recent bullish bias. Momentum indicators remain in bullish territory, with further upside potential.