A Bearish Breakout Imminent For JP225?

• 6 Jul 2021

USD/JPY

The USDJPY pair is making its way back towards the ascending trendline although currently, bearish momentum is weak. Long-term bullish sentiment will likely continue with moderate oscillations within the rally. Momentum indicators remain in bullish territory.

 

 

 

 

GBP/USD

GBPUSD has found support at the start of the trading week and may now move back to test the 1.399 resistance line. The current trading range represents a previous consolidation zone for the pair. Momentum indicators are currently undergoing reversals.

 

 

 

 

EURUSD

The Eurodollar has a bullish trajectory although conviction remains low currently. The pair seems likely to trace the ascending trendline higher in the absence of a major change in fundamentals. Momentum indicators are beginning upward trajectories.

 

 

 

 

XAUUSD

XAUUSD has started to gain ground as bullish sentiment switches to precious metals. The metal is now testing the 1795 resistance level with a break resulting in the return post-pandemic price recovery levels. Momentum indicators appear to be undergoing bullish reversals.

 

 

 

 

WS30

The WS30 is testing the 34,864 price ceiling which has proven to be an obstacle for buyers in the past. A break would mean a departure from a period of consolidation for the index that has lasted since April. Momentum indicators have upward trajectories, with further upside potential.

 

 

 

HK50

The HK50 index is testing a key support level where typically bullish rebounds occur. Bearish sentiment has been climbing in the last few trading session, yet conviction will be tested by the support level. Momentum indicators are bearish with room for further downside.

 

 

 

 

JP225

The JP225 index is beginning to narrow into a tighter trading range which could indicate that a breakout is on the cards. The descending trendline is acting as a resistance line and the 28,532 price line is a key support. Given the trajectory of price action, a bearish breakout is more probable. Momentum indicators are neutral/bearish.