Possible resistance on the USD/JPY

On the daily chart of the USD/JPY we can see that the pair made a good bullish retracement from the low that it touched at the 109.12 level on June 7^th, but once it got to the 110.32 level, it stalls its bullish momentum on that zone, which was a good support in the past and that now it could act as resistance. If the pair bounces to the downside from the 110.32 level, then it could be completing a breakout and pullback pattern, which could take the USD/JPY back to the 109.12 level. The 109.12 level could act as support, but in case it breaks that level to the downside, the next support level could be the 108,14 level. The stochastic indicator has come out of the oversold area very strongly and it could be indicating a bullish continuation of the price. If the pair continues rallying, then the 55 day exponential moving average (purple line) at the 111.2 level could act as resistance. Above the 55 day EMA, its next resistance could be the 113.00 level.

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The EUR/JPY is struggling with a support zone

The EUR/JPY is one of those trading instruments that behaves in a predictable manner around technical levels, like the round number areas. On the daily chart of the EUR/JPY we can see that the pair has found a very good support zone at the 123.00 level since the beginning of May. To the upside, there is a good resistance zone around the 125.80 level. During today’s session the pair has broken momentarily below the 123.00 level, but once it touched the 55 day exponential moving average (purple line), it bounces from the level to the upside and forms what it appears to be a spinning top or doji pattern. The spinning top or doji is an indecision candlestick pattern that could signal a bullish reversal if the next candle closes to the upside. In case of a bullish bounce, the pair may try to go and visit the resistance area at the 125.80 zone. Below the 123.00 level, its next support could be the 122.00, followed by the 200 day exponential moving average (blue line) at the 120.85 level.

The GBP/JPY keeps its bearish channel

The GBP/JPY has been retracing to the downside the rally that it made from the 135.58 level to the 148.09 level. The drop has not been in a straight line, but it has formed a very well defined bearish channel with some small pullbacks on the way down as we can see on the daily chart. Once the pair got to the 141.81 level, where we can find the 50% Fibonacci retracement and the 200 day exponential moving average (blue line), it consolidates around that zone for a while until it breaks to the downside. The yen has gained a lot of strength versus its main counterparts during today’s session as the risk aversion rises in the international financial markets. That is why we see that the bearish momentum accelerates during today’s session and the GBP/JPY breaks below the 200 day EMA to come very close to the 61.8% Fibo around the 140.00 level. The 140.00 level may act as support, but below that level, the 139.00 level along with the 76.4% Fibo may also act as support. Above the 200 day EMA and the 50% Fibo, its next resistance could be the 143.00 level.

Oil finds a good support at the 47.00 level

WTI oil has found a good support zone around the 47.00 level as shown on the daily chart. The 47.00 round number level coincides with the 61.8% Fibonacci retracement of the rally that it had from the 44.00 level to the 52.00 level. The combination of the 61.8% Fibo and the 47.00 level has made that zone a very strong support for WTI oil. The volatility on oil has risen lately after Qatar had some political differences with its neighbors like, Saudi Arabia, Egypt, Bahrain, and the United Araba Emirates. However, even with the current volatility, the price of WTI oil has not been able to break below the 47.00 level or above the 48.00 level. To the downside, below the 47.00 level, the next important support is at the 46.00 level, which coincides with the 76.4% Fibo, followed by the low at the 44.00 level. Above the 48.00 level, the next resistance could be at the 200 day EMA on the 49.41 level, followed by the 50.00 level.

Oil bounces from the 61.8% Fibo

Oil has had a very good bearish trend lately, due to the oversupply worries that are permeating the market. Once the price of WTI oil reached the 61.8% Fibonacci retracement at the 47.00 level, it bounces to the upside from that zone as shown on the daily chart. The 50% Fibo is exactly at the 48.00 level and it could act as a resistance, but the daily candle has closed as a “hammer”, which is a bullish reversal candlestick pattern if the next candle is bullish. Above the 48.00 level, the next resistance could be at the 200 day exponential moving average on the 49.41 level. The 50.00, 51.00, or the 52.00 levels could also act as resistance. Below the 47.00 level, the next support zone could be the 76.4% Fibo which is at the 46.00 level, followed by the 44.00 level. 

Silver nears its 61.8% Fibo

On the daily chart of silver we can see that the commodity has bounced to the upside from the 17.00 level and breaks above its 200 day exponential moving average (blue line) at the 17.37 level to come very near to the 61.8% Fibonacci retracement of the drop that it had from the 18.63 to the 16.00. The 61.8% Fibo is at the 17.64 level and it is possible for that zone to act as resistance. However, if the price of silver manages to break above the 61.8% Fibo, then it could go and visit the 76.4% Fibo which is very close to the 18.00 level. The 18.00 level along with the 76.4% Fibo has a higher probability of acting as a resistance. Below the 200 day EMA, the most important support is at the 17.00 round number level, followed by the 16.00 level.