Pullback continues on the USD/JPY

The Yen has been hurt lately by the comments from Japanese officials regarding the implementation of additional economic stimulus and the intervention of the Yen. That is why the USD/JPY continues retracing to the upside, after it made a low around the 106.00 zone. Today the pair breaks above the 200 week exponential moving average, which is around the 108.20 level. Even though the bearish trend is still in place for the longer term, the stochastics indicator on the daily chart has not entered the overbought zone yet, indicating that the pair has room to continue rallying. To the upside, the 111.00 level may act as resistance, above that level, the 114.00 level may also act as resistance. To the downside, the 106.00 level may act as support in case the price falls back to that zone.

GBP/USD: Visit to the 55 day EMA

The exponential moving averages may act as support and resistance zones, especially the 200 period EMA. But the 55 period EMA may also act as support or resistance. On the daily chart of the GBP/USD we can see that the pair has retraced 50% of the latest rally and reaches the 1.4400 level, which coincides with the 55 day EMA, purple line. At the moment, the pair may try to bounce to the upside from this point. Above the 1.4400 level, the 200 day EMA may act as resistance. Below the 1.4400 level, the 61.8% Fibonacci Retracement, along with the 1.4300 level may act as support.

GBP/USD: Possible visit to the 1.4400 level

The GBP/USD continues retracing to the downside, after breaking below the 200 day EMA, around the 1.4658 level. This same zone may act as resistance if the price goes back up. Above the 200 day EMA, the 1.4800 level may also act as resistance. But the price is trying to go and visit the 1.4400 level, which could act as support and the current retracement may end there. However, the MACD indicator on the daily chart is showing us a change in trend; therefore, the price may break the 1.4400 level and continue towards the 1.4200, which could act as support.

Gold tries to go back to a congestion zone

On the daily chart of gold we can see that the precious metal continues pulling back to the downside after it made a high around the 1300.00 level. On this same chart we can see that the price formed what it appears to be a “symmetrical triangle”, which is broken to the upside before reaching the 1300 zone. If the price continues falling and goes back inside the “symmetrical triangle”, then it would be entering the congestion area or consolidation zone, while rendering the pattern invalid. The price has been very undecided around this zone, due to the fact that it is oscillating around the 200 week exponential moving average, which is currently around the 1257 zone.

Good bullish pullback on the USD/CAD

The USD/CAD has been rallying for the past two days and it has finally broken above the 21 day exponential moving average, yellow line. The price has been below the 21 day EMA since the beginning of the year; therefore, the current breakout above that EMA is significant, because it may be signaling a change in trend in the medium term. The next resistance on the pair may be the 55 day EMA, purple line, around the 1.3000 level. To the downside, the 1.2700 level along with the 21 day EMA may act as support.

Bearish correction on silver

On the daily chart of silver we can see that the price reached the 18.00 level and from that zone it bounces to the downside. The bullish trend is still in place on silver, indicated by the angle of inclination of the 55 day EMA and the separation between the 55 EMA, purple line, and the 200 day EMA, blue line. For now if the price keeps retracing to the downside, then the 17.00 level may act as support. Below the 17.00 level, the 16.00 along with the 55 day EMA may also act as support. To the upside, the latest high around the 18.00 level may act as resistance again if the price goes back up.

The Mexican Peso loses ground versus the Dollar

The USD/MXN rallies rapidly for today as seen on the daily chart and we can also see that the pair was not able to confirm the breakdown below the 200 day exponential moving average, just around the 17.25 level. The pair was making lower highs with the 55 day exponential moving average, purple line, acting as a good resistance. Today the price goes back to the 55 day EMA and it may try to break it to the upside. If it breaks to the upside, then the 18.00 level could act as resistance. For now there is the possibility of the 55 day EMA to act as resistance and the price may try to go back to the 200 day EMA.