Your weekly outlook of technical patterns and structure.

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

Forex: USD/JPY in Freefall

Daily Timeframe –

Following the break of support at ¥157.81, the 50-day Simple Moving Average (SMA) at ¥157.91 and trendline support, taken from the low of ¥140.25, the USD/JPY – aside from a brief pullback – has been in freefall over the last few days.

Today, we observed the currency pair tunnel through another layer of support from ¥153.78 (marked resistance), paving the way south for a test of support at ¥151.72 (complemented by the 200-day SMA at ¥151.64). Neighbouring support levels worth pencilling in reside at ¥150.78, ¥149.58, and ¥148.14.

Commodities: Slowing Momentum on Spot Gold

Weekly Timeframe –

Despite recently reaching an all-time high of $2,483, the spot price of gold versus the US dollar (XAU/USD) continues to show signs of slowing momentum, as evidenced by price action and the Relative Strength Index (RSI).

Price action remains within an ascending channel between $2,431 and $2,277; you will also acknowledge last week’s bearish shooting star candlestick formation taking shape at the channel’s upper boundary. In addition to this, the RSI is printing negative divergence and has departed from the overbought space in April.

Should a breakout lower unfold, the precious metal could aim for support from $2,147.

Equities: Bearish Signals on the S&P 500

Despite recently reaching an all-time high of 5,669, the S&P 500’s monthly chart is on track to end July with a bearish shooting star candlestick pattern, snapping a two-month bullish phase. Follow-through selling on the chart could see the unit trade as far south as support at 4,776.

Meanwhile, on the weekly chart, last week ended in a bearish engulfing candlestick pattern (which focusses on real bodies, not upper and lower shadows), with the market index down -1.4% week to date. Channel resistance-turned-support extended from the high of 4,607, coupled with support coming in at 5,264, calls for attention as the next layer of support.

Therefore, in addition to monthly and weekly charts showing negative divergences from the Relative Strength Index (RSI), chart studies demonstrate the scope to press lower until connecting with weekly support around 5,300.

Cryptocurrency: BTC/USD Profit Taking?

Daily Timeframe –

After hitting the second (and final) profit objective of the AB=CD bullish formation – the 61.8% Fibonacci retracement ratio at $66,407 derived from legs A ($73,845) and D ($53,412) – we have seen the BTC/USD pairing (Bitcoin versus the US dollar) rotate southbound and recently step below the 50-day SMA at $64,874.

With traders booking profits, support from $62,532 is seen nearby. A break of this level unlocks the trapdoor to a decision-point area at $56,445-$59,512.

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