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Gold Declines But Trades Above The Support

USD/JPY

Following the doji on the 4 hour chart, the price dipped towards the ascending trend line for another entry and bounced back to the initial level.

Looking at the daily chart, the pair is strongly supported by the 109.82 level and aims to a 100% retracement from 111 while it travels through an ascending channel. Calling a sell at this juncture would not benefit, while going long must be carefully traded.

On the weekly chart, USD/JPY is on a bullish leg for three consecutive weeks now, the immediate resistance is at the 23.6% fib drawn from 125 to 105, once this level is broken then we will be trading near the 114 level.

XAU/USD

Gold had a steep decline in yesterday's trading session. We have been hinting about this move for quite few days now and the decline came in swiftly.

The higher bulls were all caught by surprise but the lower bulls rejoiced as their orders were triggered on the lowest level. The pair is trading above the 50 DMA and above the ascending trend line on the daily chart and the immediate resistance is at 1267.

Looking at the weekly chart and the selling pressure on the longer time frame the next level of entry is 1231 as there is enough room for the pair to decline towards 1230. Let's keep in mind that the longer term trend is bullish on Gold.

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