Your weekly outlook of technical patterns and structure.

The Research Team scans the financial markets for you, highlighting clear and actionable technical structures.

Forex: USD/JPY Testing Key Area of Confluence (Resistance)

Monthly Timeframe –

Momentum to the upside for the USD/JPY has noticeably slowed this year compared to 2022, visible not only from the price action but also evident from the Relative Strength Index (RSI), seen testing overbought space and opening the door for negative divergence.

Technicians will also acknowledge the channel resistance currently in play (taken from the high of ¥125.86) and resistance coming in at ¥152.20. This, coupled with the RSI’s technical picture, highlights a possible correction in this market, potentially back to support at ¥143.85.

Commodities: WTI Oil Bulls Fail to Secure Grip Above Key 200-Day SMA

Daily Timeframe –

From a technical perspective, things look bleak for the price of oil at the moment.

Price action on the daily timeframe shows that the unit shook hands with support on the monthly timeframe at $75.39, a level complemented by an equivalent AB=CD configuration at $76.53 on the daily chart, along with a 61.8% Fibonacci retracement ratio at $75.58. Together, this offers a relatively solid floor of technical confluence for buyers to work with.

However, in view of price failing to find acceptance north of the 200-day simple moving average at $78.15 in the form of a shooting star (bearish candlestick pattern), the above-noted support appears to be hanging by a thread and could unearth breakout selling opportunities south of the current support base towards support at $70.39.

Equities: Buyers Remain in Control on the S&P 500

Continuing from the previous week’s release, having noted that there’s scope to continue exploring higher terrain on the monthly and weekly timeframes (weekly resistance is not expected until 4,595), price action on the daily timeframe helped reaffirm this bullish presence by rupturing resistance at 4,473 earlier this week (now marked support).

Overhead, there’s some wood to chop through at the September tops from 4,541, with subsequent buying here exposing daily resistance at 4,578 (set just south of the weekly resistance mentioned above at 4,595).

Ultimately, then, buyers remain at the wheel with room to extend gains until the 4,580ish region.

Cryptocurrency: BTC/USD Nearing Resistance

Weekly Timeframe –

In a similar form to the weekly timeframe of USD/JPY, price action on the weekly chart of BTC/USD is seen challenging channel resistance taken from the high of $31,050. While the trend remains in favour of bulls for the major cryptocurrency, technical headwinds are present. Accommodating the channel resistance, we also have resistance nearby at $38,523, with the Relative Strength Index (RSI) recently entering overbought space (≥ 70.00). We are now testing overbought levels not seen since early 2021.

As a result, current resistance and the overbought conditions may eventually inspire profit-taking and fresh short positions.

Charts: Trading View

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