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GBPJPY & US Crude Spot Outlook

The GBPJPY pair has broken its trend line support earlier this week and retested the broken trend line on Wednesday. The selloff from 146.250 has punched through the 100 DMA at 145.725 and is continuing to drop at 143.370 currently. Support below the current price level may form around 143.000. A failure of this level might result in a test of the support area at 142.615 from early September. Below this level, the 142.000 round number could halt the decline but price may continue to sell off towards 141.380 or 141.000. The low from August found support just below 140.000, at 139.885.

Resistance at yesterday’s high just above 145.000 is a worrying development for buyers of the pair. The previously mentioned 100 DMA is protecting the 146.000 level and the 50 DMA is reinforcing the trend line at 146.600 today. Buyers will need to achieve a successful rally above these levels to develop a bullish picture for the chart. The last hurdle for them to gain control of sentiment would be a push above the 147.000 level and the 200DMA. This would set up an opportunity to rally for 149.754 and the 150.000 level. Targets above come in at 153.872.

 

The US Crude Oil daily chart is showing that sellers have pushed price down into support area around 6600.00 that has been holding price up all year. A loss of this area including the 6582.14 level may see a fall in price, through 6500.00 to 6400.00. This is the last higher low formed in August and might support price for a move higher to test the support area at 6600.00 as resistance. . A failure of support there might result in a deeper fall to 6000.00 or lower levels. The long term chart suggest that lower levels may be tested after the long term resistance trend line held at 7680.00, but this needs to be confirmed in daily.

Resistance around 6800.00 will be an area to focus on in the short to medium term for traders of this commodity. Initial resistance comes in at 6772.30 followed by the 6800.00 level and the 200 DMA at 6823.50. A break out above this area may lead to a test up to 7000.00 which has a similar area around it. The 100 DMA is turning lower at 6966.10 with the 50DMA overhead at 7075.80. If price pushes higher above this area 7200.00 and 7258.65 are potentially resistive areas on the chart. Sellers are likely to come out in force at the July high of 7400.00 and above 7600.00.

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