09 Oct, 2023
5 minutes
Daily Technical Analysis
Introduction:
Welcome to our daily technical analysis of the financial markets, focusing today on USD/JPY and Gold. Let's dissect the latest news, market trends, and crucial price levels to watch out for.
1. USD/JPY Analysis:
News Summary:
The weakness of yen is largely due to differences in monetary policy between the Bank of Japan and Federal Reserve, especially the recent rise in the US ten years bond yields to a new high of 4.86%. Meanwhile, Japanese government bond has come under heavy selling pressure because soaring domestic inflation and US Treasury yields prompted investors to bet on an early policy shift by the Bank of Japan. Long term JGB yields hit their highest levels in a decade this week, even as the Bank of Japan has taken additional steps to slow the trend by increasing bond purchases.
Trend Analysis:
We can see USD/JPY still is oscillating above 148.00 on H4 chart, if the yen continues to weaken and the price exceeds 150, it could prompt the Bank of Japan to normalize monetary policy sooner than analysts expected, the result will push up Japanese and global long term interest rates and triggering a technical rebound in the yen. Currently, the reasonable strategy is to set buy limit from 147.30 to 148.00, stop loss is compulsory.
Today's Key Price Levels:
Key Support Levels: [147.70]
Key Resistance Levels: [150.00]
Pivot Points [148.00]
2. Gold Analysis:
News Summary:
Gold prices rose on Monday despite a surge in US nonfarm payrolls in September that provided the basis for further interest rate increase. Notably, over the weekend, Fed governor told US inflation remains too high, the further tightening of monetary policy may be required. Higher interest rates are generally negative for gold prices. The brewing geopolitical crisis in Israel triggered panic demand for safe haven buying of gold. Although the crisis in Israel has caused rebound for gold, gold will see larger gains if the situation in the entire region escalates significantly.
Trend Analysis:
We can see gold broke through and stood above 48 hours moving average on H4 chart. The long-term downward trend remains, but gold is at important exhaustion level and some investors believe it may well be time to get back into the market. On the other hand, US Treasury yields and dollar, which remain on an upward track supported by the resilience of the US economy, it will continue to limit gains in noninterest yields gold. According to graph statistics, the sell limit would be acceptable tactic under current state, stop loss is necessary.
Today's Key Price Levels:
Key Support Levels: [1843]
Key Resistance Levels: [1877]
Pivot Points [1870]