Top 3 charts this week: Silver, GBPJPY, JAP225

12:02 PM 16 October 2018
  • Silver prices recover, face the first test
  • GBPJPY breaks the downtrend line – has the market turned around?
  • JAP225 respects the key support after a steep sell-off

Precious metal prices have suffered for a much of this year under pressure from strong dollar and rising interest rates. However, they have recovered recently. There are some reasons behind it. First of all, both gold and silver have been extremely oversold by speculators (according to the CFTC data). That could make prices prone to a short squeeze in case of some positive news. Those could include weaker data from the US and we have had some: lower inflation and sales for September. Technically, silver prices have recovered after a period of accumulation and we can see that this price recovery is gathering pace. Furthermore a reverse head and shoulders formation can be spotted with the neckline exactly at 23.6% Fibo. This is the first barrier that separates this recovery from a true rally.

Silver prices recover but a decisive step is yet to be made. Source: xStation5

Start investing today or test a free demo

Open real account TRY DEMO Download mobile app Download mobile app

GBPJPY has been in a broad downward channel for much of this year, although the situation has changed recently. We may see that a downtrend line has been broken and the pair has set a higher high, possibly breaking a downward sequence. Prices were unable to break the 150 zone at first but a pullback was stopped at a trendline (this time serving as a support) and a major recovery from here could invigorate the bulls. The next few days will tell if that’s enough to propel the price above the 150 resistance.

GBPJPY could have ended the downward sequence but the 150 level needs to be broken as a confirmation. Source: xStation5

The Japanese stock market has been really weird this year, spending a lot of time in a consolidation. Things went even trickier from there as the JAP225 broke higher only to erase all the gains with a brutal speed. Crucially 22000 support zone worked again and for now this offers the bulls a chance to regroup. The 23000 resistance zone is between 38.2 and 50% Fibo so this area is – once again – the key resistance level.

JAP225 managed to regroup at 22000 points. Will the bulls make it to (and above) 23000 again? Source: xStation5

 

Share:
Back
Xtb logo

Join over 1 000 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits

We use cookies

By clicking “Accept All”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

This group contains cookies that are necessary for our websites to work. They take part in functionalities like language preferences, traffic distribution or keeping user session. They cannot be disabled.

Cookie name
Description
SERVERID
userBranchSymbol cc 2 March 2024
test_cookie cc 25 January 2024
adobe_unique_id cc 1 March 2025
__hssc cc 8 September 2022
SESSID cc 2 March 2024
__cf_bm cc 8 September 2022
intercom-id-iojaybix cc 26 November 2024
intercom-session-iojaybix cc 8 March 2024

We use tools that let us analyze the usage of our page. Such data lets us improve the user experience of our web service.

Cookie name
Description
_gid cc 9 September 2022
_gat_UA-98728395-1 cc 8 September 2022
_gat_UA-121192761-1 cc 8 September 2022
_gcl_au cc 30 May 2024
_ga_CBPL72L2EC cc 1 March 2026
_ga cc 1 March 2026
__hstc cc 7 March 2023
__hssrc

This group of cookies is used to show you ads of topics that you are interested in. It also lets us monitor our marketing activities, it helps to measure the performance of our ads.

Cookie name
Description
MUID cc 26 March 2025
_omappvp cc 11 February 2035
_omappvs cc 1 March 2024
_uetsid cc 2 March 2024
_uetvid cc 26 March 2025
_fbp cc 30 May 2024
fr cc 7 December 2022
_ttp cc 26 March 2025
_tt_enable_cookie cc 26 March 2025
_ttp cc 26 March 2025
hubspotutk cc 7 March 2023

Cookies from this group store your preferences you gave while using the site, so that they will already be here when you visit the page after some time.

Cookie name
Description

This page uses cookies. Cookies are files stored in your browser and are used by most websites to help personalise your web experience. For more information see our Privacy Policy You can manage cookies by clicking "Settings". If you agree to our use of cookies, click "Accept all".

Change region and language
Country of residence
Language