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 Carving Out Bullish Flag South of YTD Peak

Daily Timeframe –

The USD/JPY is seen fluctuating just south of YTD highs at ¥145.07 and is carving out a possible bullish flag between ¥145.07 and ¥143.98.

Traders and investors will note that a bullish flag is generally considered a continuation pattern. Therefore, knowing that this market has trended higher since the beginning of this year, a breakout north could encourage follow-through buying.

Commodities: Spot Silver (XAG/USD) Chalking up AB=CD

Daily Timeframe –

Following the double-top pattern formed between April and May at $26.14, recent trading has seen price action pencil in an AB=CD bearish formation, denoted by a 100% projection at $23.25. Technicians will also acknowledge that this AB=CD configuration is complemented by trendline resistance taken from the high of $26.14.

Consequently, given the above technical observations, spot silver could continue to press lower towards support at $21.54.

Equities: Nikkei 225 Echoing Double-Top Pattern

Daily Timeframe –

A double-top pattern is seen forming at 33,772 (its highest price level since 1990), with a neckline extended from 32,306. Notably, though, until a daily close below the pattern’s neckline is seen, this pattern remains invalid. A close lower, therefore, would allow chart pattern traders to plot the pattern’s profit objective at 30,809.

In addition to the above, we have seen a sizeable depreciation in momentum, according to the Relative Strength Index (RSI). Should the indicator cross below the 50.00 centreline, this would inform market participants that average losses exceed average gains (negative momentum).

Cryptocurrency: BTC/USD at YTD Highs; Active Pennant Pattern

Daily Timeframe –

Trending higher since late 2022, BTC/USD recently retested the upper boundary of a completed pennant pattern between $29,539 and $31,443.

Given the present uptrend, the breakout above the pennant pattern’s upper boundary could trigger follow-through upside, targeting as far north as $37,199: the pennant pattern’s profit objective.

Charts: Trading View

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