Bearish Sentiment Returns As JP225 ‘Fills The Gap’

• 10 Nov 2021

USD/JPY

The USDJPY looks set to continue the bearish move and the next target will be the 111.97 support line which represents a previous resistance zone. Momentum indicators have well-established downward trajectories with RSI entering bearish territory and MACD fast approaching the zero line.    

 

 

 

 

GBP/USD

The GBPUSD pair has made a recovery from a recent low at the 1.341 support line, however, the recovery has only made it as far as the next resistance zone at the 1.358 price line. A doji candle at this price line suggests that buyers have lost steam.  

 

 

 

 

EURUSD

EURUSD buyers are making moderate attempts to recover from the 1.153 support line and despite several tests, the lower bound of the triangle is yet to be broken. The apex is fast approaching so we ay anticipate a bearish breakout.  

 

 

 

 

USDCHF

The USDCHF pair continues to stalled at the ascending trendline and 0.910 support line where typically, bullish rebounds occur. Heavy selling pressure in recent trading suggests that bearish sentiment is dominating yet, a break has not materialised. 

 

 

 

 

USDCAD

The USDCAD pair has failed to break the 1.243 resistance line and currently will remain testing the upper bound of a narrow consolidation channel between the 1.228 and 1.243 price levels. Momentum indicators have established upward trajectories in support of bullish sentiment.

 

 

 

 

XAUUSD

The XAUUSD has stalled at the 1831 resistance line and smaller-bodied candles in recent trading sessions indicate that buying momentum is waning. Price action may struggle to move out of the current trading range which has held since June. 

 

 

 

 

JP225

The JP225 index has ‘filled the gap’ indicating a return to the previous bullish sentiment and an end to the most recent rally. A breakaway gap during the previous rally represented a strong bullish appetite, however, after a break of the 29,371 price line, momentum started to weaken.