USD/JPY Continues Falling

After the fundamentals yesterday USD/JPY fell with over 500 pips and today it broke below the support at 107.60 and continued falling, forming a new low. The bearish trend clearly continues for now and the pair will likely continue falling at least until it reaches the next major level of support, which is at 103.80 and coincides with (MA)89 on the monthly time frame. While I have little doubt that USD/JPY will reach that level and soon, the question is what follows next? A possible breakout below the support could lead to a further drop to 100.00. On the other hand, if the pair bounces off 103.80 it could retrace back to 107.00.

Gold Will Likely Start Falling Again

After yesterday’s fundamentals Gold has moved to the upside again and is currently testing $1,260, but so far that level of resistance remains unbroken. In my opinion, it will remain that way at least until the end of the week. Since range continues for now, Gold will likely bounce off the resistance and start moving to the downside towards the support at $1,220, and if it breaks below that level it will continue towards $1,200, which coincides with (MA)89 on the daily time-frame. More importantly, the spinning top candlestick that is visible on the monthly time-frame is still valid, so the possibility that Gold might make a more significant move to the downside remains open.

NZD/USD: Will It Start Falling?

NZD/USD has been consolidating for a long time now, but the pair has also slowly been moving to the upside and recently it almost reached the resistance level at 0.7100, which coincides with (MA)89 on the weekly time frame. While the pair did not quite reach that level – it stopped at 0.7053 – it also formed a shooting star candlestick on the weekly time-frame which is a signal that NZD/USD might start moving to the downside sometime soon. Should that happen, the first level of support would be 0.6750 – 0.6700, and a possible break below that level could lead to a further drop to 0.6450. The fundamentals later today will likely give it the necessary push to start falling.