The recent downside correction in USD/JPY from the 157.70 zone is a cause for concern. While there is a major bullish trend line forming with support at 156.00 on the 4-hour chart, the pair started a downside correction and traded below 157.20. The move below the 23.6% Fib retracement level of the upward move raises questions about the sustainability of the bullish trend. The current support levels at 156.00, 155.65, and the 200 simple moving average must hold to prevent further losses.
Gold prices are consolidating above the $2,320 support zone, with the bulls showing activity near this level. However, the lack of a strong upward movement towards the $2,400 level is a cause for concern. The market sentiment towards gold remains cautious, and any failure to break above the resistance levels might lead to a prolonged consolidation phase.
Bitcoin price is eyeing a move above the $70,000 level, which indicates bullish momentum in the market. However, the lack of specific price targets or resistance levels in the analysis raises questions about the accuracy of the prediction. Traders should exercise caution and monitor the price action closely to assess the likelihood of a sustained move towards the $70,000 level.
The upcoming economic releases, including US Personal Income for April 2024 and US Core Personal Consumption Expenditure, are crucial factors that could influence the market trends. While the forecasts suggest modest growth, any deviation from the expected numbers might lead to increased volatility in the market. Traders should stay informed about the economic releases and adjust their trading strategies accordingly.
The recent market trends in USD/JPY, gold prices, Bitcoin, and upcoming economic releases suggest a nuanced and unpredictable environment for traders. While technical analysis provides valuable insights, it is essential to remain cautious and adaptive to changing market conditions. Traders should exercise patience and discipline in their trading decisions to navigate the complexities of the market successfully.