Dollar Yen is right on the mark as we mentioned before and has retraced for the week. Price has broken below the minor ascending trend line and is heading towards the 100 DMA or the 103.17 level. Below this is supported by the 21 DMA and finally followed by the 50% fib at 101.92. USD/JPY will decline towards the 100 DMA and bounce back to the upper trend line and any negative release from the US or positive figures from the Jap's will push the pair towards the 50% fib. USD/JPY is technically still in the bullish wave and this retracement can only be noted as profit taking and bullish recruitment.
Gold is heading towards the 50% fib or the 21 DMA at 1281, momentum indicators have risen from the over sold territory and is pointing towards the mid level which coincides with the 50% fib on the price chart. MACD has also crossed over in the 4 hour chart and has plotted a bullish divergence in the 8 hours chart, all of these developments points towards a retracement in Gold. We are waiting for the retracement to complete and start loading our sell orders on the resistance level.
For more daily market insights, visit NoaFX Knowledge Center.