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The FxPro Analyst Team

Forex: USDJPY and Gold Trade Near Key Levels Before Release of US Data

USDJPY has turned bullish since the US presidential election, trading along the downside uptrend line support with strong bullish momentum.

Yet currently the price is trading below the long term major resistance level at 118.00, the pressure above the level is heavy.

On the 4 hourly chart, the 10 SMA is crossing over the 20 SMA. The current price is trading below the uptrend line support, indicating the bullish momentum is waning.

The resistance level is at 118.00, followed by 118.50 and 119.00.
The support line is at 117.40, followed by 117.20 and 117.00.

We will see the release of a series of US economic figures today. Durable and Core Durable Goods for Nov, Initial Jobless Claims, and the Q3 GDP final reading, to be released at 13:30 GMT.
PCE and Core PCE (YoY and MoM), Personal Income and Personal Spending for Nov, to be released at 15:00 GMT.

The figures will cause volatility for the dollar and dollar crosses.

With better-than-expected readings, USDJPY will likely rally and test resistance levels.
With lower-than-expected readings, USDJPY will likely fall and test support lines.

USDJPYDaily

USDJPYH4

Gold has turned bearish since the US presidential election, trading below the 10 and the 20 SMAs with strong bearish momentum, as a result of a strong dollar.

Currently the price is trading above the support zone between 1120-1130, where provides a stronger support.

The 4 hourly and daily Stochastic Oscillators are both below 30, indicating the bearish momentum is waning and a likely rebound.

Yet the upside pressure is heavy, as the price is still trading below the 10 and 20 SMAs. Since the US presidential election, the biggest gold ETF in the world, SPDR, has reduced 13% of the positions.

The resistance level is at 1136, followed by 1140 and 1143.
The support line is at 1130, followed by 1125 and 1120.

We will see the release of a series of US Durable and Core Durable Goods for Nov, Initial Jobless Claims, at 13:30 GMT. It is Followed by US PCE and Core PCE (YoY and MoM), Personal Income and Personal Spending for Nov, at 15:00 GMT.

The figures will cause volatility for the dollar and gold prices.

With better-than-expected readings, it will likely weigh on gold prices and test support levels.
With lower-than-expected readings, it will likely push gold prices up and test resistance levels.

GOLDDaily

GOLDH4

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