- USDJPY trades again above the bearish trend line
- Gold prices struggle to keep above $1300
- A good start to the new year in the Bitcoin market
An improvement in risk sentiment at the beginning of the new quarter has led to a capital outflow from safe haven markets. As a result, the Japanese yen has weakened and the USDJPY has approached its bearish trend line as well as the 200DMA. It needs to remember about the NFP report (tomorrow) which could inject more volatility into USD currency pairs. Let us recall that the ADP release showed a lower than expected employment increase in March. It poses a downside risk for the NFP on Friday (the NFP release for February showed only 20k new jobs created).
Gold is the second market we would like to focus on. Despite notable falls in US yields during the second half of March gold prices have failed to move toward this year’s highs. It suggests that the latest decline in bond yields may have been too large and we may seen a rebound soon. Technically the area of $1275-1285 seems to be pivotal for gold prices. If prices leave this area, we may see a comeback toward the 200DMA ($12400 at present). In turn, the major resistance might be found in the vicinity of $1325.
Bitcoin is the last market we are analysing in this article. The crypto price skyrocketed on Monday on the back of speculation that Warren Buffet is investing in BTC. However, it was just a prank (April Fool’s Day). The price is heading 6% lower today. Technically the Bitcoin price has approached the 38.2% retracement of the bearish wave since the beginning of July 2018. If the price keeps climbing, $5800 could be another aim for bulls (this level is also underpinned by the 50% retracement as well as the lows from June 2018). The nearest support may be localized at around $4200.