Intraday Market Analysis – USDJPY Looks For Buying Interest
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USDJPY retraces in search of support
The US dollar’s rally ran out of steam for lack of liquidity during the long weekend in the US and the UK.
Traders are cautious in bidding up amid thin trading volume especially after last week’s surge above the psychological level of 110.00. The RSI is retreating into the neutrality area. The bearish MA cross may attract some selling interest in the near term.
The zone between 109.00 and 109.30, a former resistance, would be a key support to watch for. The peak at 110.20 is the resistance in case of rebound.
XAUUSD breaks out of horizontal consolidation
Gold stays on high ground following a retreat in Treasury yields at the end of last week. The precious metal is consolidating its gains after the previous round of rallies.
The general direction remains upward despite a choppy path. A bullish breakout above 1911.00 after a brief pause suggests strong buying interest.
1900.50 is the immediate support as buyers build up their stakes. 1927.50 would be the next target. Then an extended rally may send the price back to January’s peak at 1959.00.
US 30 recovers towards peak
US stock markets remain well-supported by recovery momentum into the summer. The Dow Jones index is still rising steadily towards the previous high at 35100.
The rally above the supply zone around 34500 suggests that the bulls were willing to pay up to reverse the sell-off. A break above the intermediate resistance at 34700 could increase the bullish momentum.
As the price achieves a series of higher highs again, an overbought RSI may briefly temper the bullish fever. 34220 is the closest support.
