Technical Analysis: Gold, EURJPY

Will gold prices lift higher after the Jackson Hole Symposium? [Video]

(Giles Coghlan LLB, Lth, MA – HYCM)

At the last Jackson Hole Symposium Jerome Powell expected inflation to be transitory. He also told participants that he saw little evidence of wage increases at the time that might threaten excessive inflation. It is reasonable to expect Jerome Powell to be very firm that the Fed will keep hiking interest rates in order to control rising inflation.

The reaction to Powell’s comments will be crucial for the USD, bonds, and precious metals. If Jerome Powell stresses slowing growth and a Fed ready to pause rates that should send the USD lower, yields lower, and gold higher. Bear this strong pattern in gold in mind in case of a favourable upside environment.

Major Trade Risks: If on the other hand, Jerome Powell stresses that the Fed needs to hike rates at a quicker pace then that should send the USD higher, yields higher, and gold lower.

EUR/JPY triple top for a good short trade

(Nenad Kerkez – Top-XE)

EUR/JPY technical analysis

• EUR/JPY Triple Top Formation.
• Selling the rallies.
• Bearish trend continues below point 1.
• 134.30-60 is the first target.

MEGATREND MAs: Bearish

D1 chart EUR/JPY

1. Double bottom support.
2. Higher high.
3. Double top.
4. Intraweek target.

EUR/JPY is bearish. Technicals show a clear downtrend with many attempts to break the blue line point 1 as the price is bouncing. However, today’s candle might break it lower and continuation below the point 1 should lead the price lower to intraday target -136.57 and eventually towards the intraweek target 134.31 or 132.41 depending on the ATR and momentum.

These are the reason when Yen is getting stronger:

Yen strength

1.100% risk-off sentiment.

2. Gold up.

3. Commodities prices down.

4. Equities down.

5. Yen strengthens as a result.

It happens because the Japs can get cheap credit, so they invest overseas heavily. When it’s risky, they bring the money back creating demand for Yen and vice versa, when its bullish Equities, they pump their money overseas, which means they sell Yen and buy foreign currency.

Read Stocks, gold and crypto under pressure into Jackson Hole [Video]

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