Good evening team,
The JPY pairs are extremely stretched and we see potential reversals in the market over the coming days.
The USDJPY has created an ascending wedge formation at a key resistance zone meaning we may see a move lower. Gold and the USDJPY generally speaking have an inverse correlation.
This suggests we may see an uptick in gold prices if investors turn risk off and move towards the safe havens.
Gold has reached a key resistance zone.
Gold 4 hour charts
Trade Setup: BUY Market execution, current price 1700, stop loss 1687 and take profit target 1727
Stop loss: 130 pips
Take profit: 270 pips