Trading short GBP/JPY? USD Index consolidating, gold (XAU/USD) at lower trend line [Video]
Is the big JPY reversal about to begin?
I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at the USD Index, WTI (USOil), the DAX (DE40), Gold (XAUUSD) and GBPJPY.
As you know the Japanese Yen is incredibly weak right now due to the fundamental effects of Interest Rate and Bond Yield differentials and we have been waiting for a big reversal.
We see Rising Wedges (a bearish pattern) on almost all the JPY pairs so let’s keep an eye on these.
We want to trade short when the time is right, but against a weak currency, not a strong one.
Right now, GBP is displaying some weakness but this might be temporary due to the current political situation.
Also, before you make any technical decisions, remember that tomorrow’s US CPI report will be a huge event and will affect the FX and Equity markets.
Gold is still trending up and price action is following this lower trend line but I would wait for confirmation from another indicator and, of course, be careful with tomorrow’s CPI.
We see price action on WTI at the upper trend line and the Stochastic Oscillator about to turn lower.
Price action on the USD Index is consolidating into this symmetrical pennant with the same on the Stochastic Oscillator and MACD.
And, finally, we see a Rising Wedge on the DAX so we will keep an eye on this.
Reprinted from FXStreet，the copyright all reserved by the original author.
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