Gold And Yen: Monday’s Strongest Setups

Risk ON mode is back on the market. Prices of riskier assets are climbing up and safe havens are drowning. This can especially be seen on when Friday was one of the worst days in the past few weeks.

In the long-term, gold is still on the positive side of the market though. The price is locked inside of the wedge formation, which is promoting the breakout to the upside. Especially as long as we stay above the major support on the 1380 USD/oz. In the shorter term, the situation here is negative. The price bounced from the 1480 USD/oz resistance and went lower. We are also inside of the smaller flag formation, which is promoting the breakout to the downside. We can conclude it this way: as long as we are inside of the wedge pattern, the sentiment is negative but the breakout to the upside, will bring us a long-term buy signal.

The second instrument is , where the price broke the upper line of the rectangle, giving us a nice buy signal. This sentiment is additionally strengthened by the bullish wedge formation, from the first days of December. Recently, GBP/JPY is very respectful towards the technical patterns, we had this wedge and the rectangle but also a beautiful flag in September and October, which resulted in a new bullish wave.

Now , which starts this week on the back foot. The attack on the 109 resistance was unsuccessful and the price reversed creating a triple top formation. We can consider it also as a false breakout and both patterns are promoting a further slide. Chances for a bigger drop here are currently very high.

Gold And Yen: Monday’s Strongest Setups

Axiory Analysis

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.