Intraday Market Analysis – USDJPY Confirms Bullish Reversal.
USD/JPY breaks above critical resistance
The US dollar rallies on solid growth and jobless claims data. The pair has found bids in the daily demand zone between 108.30 and 108.60. Repeated tests of the support without breach have suggested strong interest in keeping the price afloat.
The latest impetus above 109.70, the upper band of a three-week-long consolidation range, reverses the gear in favor of the dollar.
110.50 then the psychological level of 111.00 would be the next target.
In the meantime, an overbought RSI may initiate a brief pullback towards 109.00.
XAG/USD bounces off rising trendline
Jitters in US Treasury yields put a cap on bullions’ advance. Silver has been grinding up along a rising trendline since late March.
The breakout above 28.30 has put the psychological level of 30 in buyers’ line of sight. This is an indication that the bulls are still in charge.
A rally back above 28.20 would bring in momentum and turn what looks like a short-term recovery into the continuation of the medium-term uptrend.
As the price tests the trendline (27.50), a neural RSI may attract more bids.
UK 100 consolidates in pennant
The FTSE remains subdued after the number of Covid cases in the UK broke above 3,000 for the first time in over six weeks.
The index is trading in a narrowing range between 6980 and 7075. This is a sign of the market’s indecision intraday. A break above the pennant would boost momentum and lead the price to 7160, eventually turning into a bullish continuation.
A bearish breakout, however, may trigger a cascade of sell-off to 6925 and then towards 6820 as buyers try to bail out.