As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
USD/JPY: a SELL opportunity
2021-02-17 • Updated
USD/JPY rose to the resistance of the 50-week MA at 106.00. The pair is not at the resistance line since the end of December. This is the third time the price comes to this level. As a result, a correction to the downside is likely. The decline below support at 105.85 will open the way down to 105.60 (200-day MA). The further fall will make the pair vulnerable for a fall to the lower border of the short-term uptrend at 105.00.
The market awaits the release of the US retail sales and the FOMC meeting minutes. IF the former is worse than expected, USD/JPY will get hurt.
Trade idea for USD/JPY
SELL 105.80; TP 105.60; SL 105.90
SELL 105.40; TP 105.00; SL 105.60
On January 12, the Bureau of Statistics will publish the Consumer Price Index (CPI) figures, a key index for determining interest rates. While we await the release, experts forecast a decline in the CPI data, a hint at weaker Dollar values in the global markets.
The trend in the scenario above is clearly bearish. We have also had a recent break of structure at the marked horizontal arrows, which means we can expect price to react from the supply zone that broke the structure.
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