Fundamental Analysis

• USDJPY is approaching the 159 yen level, and 160 yen also seems realistic.
• The Bank of Japan’s inaction is a factor, making currency intervention difficult.
• US economic indicators have shown weak results, leading to increased expectations of rate cuts and a rise in gold.

XAUUSD technical analysis

Analyzing the daily gold chart. Gold has risen above the 28-day moving average to around 2361 USD. Attention is on whether it can break above 2388 USD, which corresponds to the third “head.” Previously, the formation of a “head and shoulders” pattern was expected, but if it surpasses the third high without breaking the neckline, it may be necessary to revise the outlook.

Weak US economic indicators have led to a renewed inflow of funds into gold. If it breaks above 2387 USD, the monthly resistance line at 2393 USD will come into play. The 2400 USD range is likely to be postponed to next week.

Day trading strategy (1 hour)

Analyzing the hourly gold chart. The consolidating market continued, but the low has been rising, and it broke out of the 2338 USD resistance line yesterday, surging to around 2364 USD. The momentum is strong. The target is expected to be the high of 2387 USD.

The day trade strategy is mainly to buy on dips. If it falls to around 2352 USD, it’s a good buying opportunity. Stop at a break below 2348 USD. Take profit at 2385 USD.

Support/Resistance lines

The support and resistance lines to consider in the future are as follows:

2352 USD – Monthly support line

Market Sentiment

XAUUSD Sell: 60% Buy: 40%

Featured Currency Pair of the Week (USDCAD)

US Dollar to Canadian Dollar is declining. As crude oil continues to rise, the Canadian Dollar is more likely to be bought. Additionally, US economic indicators have been generally weak, making the US Dollar more prone to selling. It is below the 28-day moving average, and attention should be paid to whether it will fall to the 90-day moving average or the rising trendline.

Today’s important economic indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.