Your weekly review of technical patterns and structure.

The research team scans the financial markets for you, highlighting clear and actionable technical structures.

Forex: USD/JPY Descending Channel Breach?

Daily Timeframe –

Since late November, the daily timeframe’s descending channel on the USD/JPY, drawn from ¥142.24 and ¥133.62, has been in play. Interestingly, we can see that buyers are perhaps gaining in strength as the price, although a lower low has been seen, failed to test the descending channel support in recent trading. This, alongside the Relative Strength Index (RSI) showing positive divergence out of oversold space, indicates that the USD/JPY may eventually venture north of the descending channel.

Bonds: Double-Top Pattern Seen on Weekly RSI for the 10-Year Yield

Weekly Timeframe –

The benchmark 10-year US Treasury yield has recently pushed through the neckline (51.34) of a double-top pattern (81.58) on the weekly timeframe’s Relative Strength Index (RSI). An additional move under the 50.00 centreline indicates negative momentum on this chart and a potential run to price support at 3.200%.

Commodities: Silver on the Verge of Completing a Rising Wedge

Daily Timeframe –

Coupled with the Relative Strength Index (RSI) showing negative divergence and bordering on crossing under the 50.00 centreline, spot silver (XAG/USD) is nearing a break beneath a rising wedge pattern, drawn from $24.13 and $22.56. A decisive push below could see the unit attack the pattern’s profit objective at $22.03.

European Equities: Resistance-Turned Support Visible on the DAX40

Daily Timeframe –

2023 has been kind to Germany’s DAX 40 thus far, rallying 10% alongside forging a technical uptrend (series of higher highs and lows) since early October 2022. The advance also recently witnessed the index break and retest resistance-turned support at 14,958. Successfully maintaining position north of the aforementioned support shines the technical spotlight on the 16,301 all-time high.

Cryptocurrency: Ripple Upside Showing Signs of Slowing Through Rising Wedge

H4 Timeframe –

Year to date, ripple against the US dollar (XRP/USD) has climbed more than 40%, compressing within an ascending channel, extended between $0.3000 and $0.3550. While the year has started on a strong footing, upside momentum is demonstrating signs of decreasing, shown through a rising wedge, taken from $0.3679 and $0.4086, as well as the Relative Strength Index (RSI) displaying negative divergence and the indicator crossing south of its 50.00 centreline.

Charts: TradingView

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