It is a bank holiday in Japan while their home currency is stumbling to a new decades-low as USDJPY surged past the 130 key levels. 

Dollar on Steroids

USDJPY Daily Chart

The dollar Yen rallied more than 240 pips yesterday to close significantly above its previous swing high. As Asia opened this morning the pair did start to retrace slightly, but considering the strong momentum that his pair has, we are eyeing for 133.80 level as our next target, which is currently 360 pips away. As the Japanese traders are out for the day, trading volume is definitely low, and do watch out for higher volatility if you are trading Yen.

DXY Daily

It is also worth mentioning that the Dollar index went for a good run and has had a streak of 6 consecutive green days where it gained more than 3.3 % against a basket of foreign currencies.

GBPUSD Daily

As USD strengthens, other major currencies suffer. If we look at GBPUSD on the Daily, the key support was broken without any effort, as if it wasn’t there in the first place. GBPUSD lost 4.82% against the dollar in just 6 trading days. We may see Pound Dollar testing 1.2250 key support next, with confluences including the strong bearish momentum, and also a very asymmetrical order book from the retail traders where more than three-quarters of them are buying into the downtrend.

GBPUSD H4: cTrader

Oil: Ending the month in green?

US Crude Daily

Oil continues to post gains for the fourth day and is attempting to break above $105 resistance. It is set to close the month with gains as supply concerns trump the fall in oil demand from China’s lockdowns. I am expecting prices to rise in the medium to long term when China eases its COVID measures, and the supply is not boosted enough to replace Russia’s crude.

Gold: Another Fakeout

Gold H4

It is very interesting as the USD was beating most of the other currencies, but gold has had a significant bounce from the $1880 demand zone. It is now trading back into its consolidation range, and this could be another fakeout as highlighted in the blue circles. Outlook on gold remains mixed as the dollar is going to continue gaining strength with the upcoming rate hikes, while on the other hand, it is still the go-to safe haven with so many uncertainties in the markets.

US Stock Indices

SP500 H4

As 4300 key support got broken, it encountered another level of buying pressure at 4150. Will the broken support turn into a resistance level and prevent SPX from going up further in the short term?

Nasdaq Index Daily

Looking at the tech-heavy Nasdaq index, 13000 key support is holding up pretty well despite a disappointment in earnings from Apple and Amazon. However, I don’t think the support will last long. The smaller companies in the Nasdaq index may not fare any better when the largest players are getting impacted negatively byfactors from supply chain disruptions to inflation and war.

Bitcoin: Please stop hitting the Pause Button

Bitcoin Daily

Bitcoin is not moving much. In fact, the entire crypto market is slowing down to a halt as capital fled from riskier assets.


We can see that the Crypto exchange volume has dropped by more than half since the end of last year. We are still waiting for a breakout to either side for a more solid directional bias.

Sign up for an account with FXPIG now!
Trade more than 300 instruments on raw spreads starting from 0 pip with commissions as low as $2 per lot per side.

-

Welf

Trader, Technical Analyst