USDJPY and Gold Trade Near Key Levels Before Release of US Data

22 December, 2016

USDJPY has turned bullish since the US presidential election, trading along the downside uptrend line support with strong bullish momentum. Yet currently the price is trading below the long term major resistance level at 118.00, the pressure above the level is heavy.

On the 4 hourly chart, the 10 SMA is crossing over the 20 SMA. The current price is trading below the uptrend line support, indicating the bullish momentum is waning.

The resistance level is at 118.00, followed by 118.50 and 119.00. The support line is at 117.40, followed by 117.20 and 117.00.

We will see the release of a series of US economic figures today. Durable and Core Durable Goods for Nov, Initial Jobless Claims, and the Q3 GDP final reading, to be released at 13:30 GMT.
PCE and Core PCE (YoY and MoM), Personal Income and Personal Spending for Nov, to be released at 15:00 GMT.

The figures will cause volatility for the dollar and dollar crosses.

With better-than-expected readings, USDJPY will likely rally and test resistance levels. With lower-than-expected readings, USDJPY will likely fall and test support lines.

Gold has turned bearish since the US presidential election, trading below the 10 and the 20 SMAs with strong bearish momentum, as a result of a strong dollar.

Yet currently the price is trading above the support zone between 1120-1130, where provides a stronger support.

The 4 hourly and daily Stochastic Oscillators are both below 30, indicating the bearish momentum is waning and a likely rebound.

The resistance level is at 1136, followed by 1140 and 1143.
The support line is at 1130, followed by 1125 and 1120.

We will see the release of a series of US Durable and Core Durable Goods for Nov, Initial Jobless Claims, at 13:30 GMT. It is Followed by US PCE and Core PCE (YoY and MoM), Personal Income and Personal Spending for Nov, at 15:00 GMT.

The figures will cause volatility for the dollar and gold prices.

With better-than-expected readings, it will likely weigh on gold prices and test support levels. With lower-than-expected readings, it will likely push gold prices up and test resistance levels.


Source  
New U.S. House coronavirus bill contains $3 trillion plus in aid13 May, 2020  

The Democratic-led U.S. House of Representatives unveiled on Tuesday a sweeping new coronavirus bill with more than $3 trillion in assistance to states...

The phantom threat of inflation and fears of the virus second wave12 May, 2020  

Asian indices are losing about 1% on Tuesday morning while futures for European and US indices point to open in the red. This is associated...

UK could start lifting coronavirus lockdown measures7 May, 2020  

Britain now has the highest Covid-19 death toll in Europe, according to the latest official figures, climbing past Italy which, alongside Spain, has been among the...


Scientists Create Antibody That Defeats Coronavirus in Lab5 May, 2020  

Scientists created a monoclonal antibody that can defeat the new coronavirus in the lab, an early but promising step in efforts to find treatments and curb...

Saving more money than ever is destroying the economy4 May, 2020  

The COVID-19 pandemic is hurting many spheres of the economy. To slow the spread of the virus, the government told people to stay at home. Tons of businesses...

US weekly jobless claims hit 3.84 million1 May, 2020  

First-time filings for unemployment insurance hit 3.84 million last week as the wave of economic pain continues, though the worst appears to be in the past, according...


These countries effectively contained the coronavirus28 Apr, 2020  

Countries like Australia, New Zealand and South Korea are among the few which managed to buck the trend and put a lid on the coronavirus outbreak, at least for now...

Europe Is Taking a Harder Look at China After Virus Suspicions20 Apr, 2020  

European governments struggling with the fallout from the Covid-19 pandemic are hardening their positions toward China as suspicions grow over...

Coronavirus crisis could pave the way to universal basic income16 Apr, 2020  

The coronavirus crisis has revitalized calls for a universal basic income, with even the Pope suggesting that now may be the time to consider giving everyone free money...