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Technical Trade Setups: Gold, Japanese Yen and S&P 500 Levels

Technical Trade Setups: Gold, Japanese Yen and S&P 500 Levels

Michael Boutros, Strategist

Near-term Technical Outlook: Trade Setups on Gold, USD/JPY & SPX500

  • Updated Charts on Technical Setups we've been tracking in Gold, USD/JPY & SPX500
  • Gold weekly opening-range setup in play
  • USD/JPY rally extending into key resistance- risk for inflection
  • S&P 500 plunge targeting key uptrend support
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An update on technical setups we've been tracking inthe Gold, the Japanese Yen, and the S&P 500. These are the targets and invalidation levels that matter heading into the close of the week.Review my latest Strategy Webinar for an in-depth breakdown of thesetechnical setups and more.

Gold Price Chart - XAU/USD 120min

Gold Price Chart - XAU/USD 120min - GLD Trade Outlook - GC Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; Gold on Tradingview

In this week’s Gold Price Outlook we highlighted this slope while noting that, “the focus is on a breakout of the weekly opening-range in the days ahead.” The weekly range has taken shape just above key support targets at 61.8% retracement of the late-March rally / 2021 high-day close at 1913/18- weakness below this threshold would threaten another run at the March lows near 1891. Ultimately a topside breach / close above 1950/59 is still needed to suggest a larger recovery is underway.

Bottom line: Pullbacks should be limited to 1913 IF price is heading higher on this stretch. Review my latest Gold Weekly Price Outlook for a closer look at the longer-term XAU/USD technical trade levels.

Japanese Yen Price Chart - USD/JPY 120min

Japanese Yen Price Chart - USD/JPY 120min - US Dollar vs Japanese Yen Trade Outlook - USDJPY Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; USD/CAD on Tradingview

In las month’s Japanese Yen Weekly Technical Price Outlook we noted to that the, “USD/JPY breakout is extending into key resistance at multi-year highs and while the broader outlook remains constructive, the immediate advance may be vulnerable in the weeks ahead.” Well, that idea was short-lived with USD/JPY rallying more than 2.3% off the March 31st low. A breakout of the weekly opening-range has now extended into a major technical confluence at 123.64-124 – a region defined by the 61.8% Fibonacci retracement, the yearly high-day close and the 100% extension of the most recent advance. Looking for a reaction here with a topside breach / daily close above needed to keep the immediate recovery viable. Initial support now

Bottom line: A good area to reduce portions of long-exposure / raise protective stop – losses should be limited to the weekly open at 122.60 IF price is heading higher with a breach from here exposing the upper parallel (currently ~124.50s) and the yearly high at 125.10.

S&P 500 Price Chart – SPX500 240min

S&P 500 Price Chart - SPX500 240min - SPX Trade Outlook - ES Technical Forecast

Chart Prepared by Michael Boutros, Technical Strategist; SPX500 on Tradingview

I highlighted this setup in today’s S&P 500 Technical Outlook and the levels remain in play as price eyes near-term confluent uptrend support at the January low-day close / 38.2% retracement at 4416/35.

Bottom line: We’re looking for a possible exhaustion low into / ahead of this threshold with a breach above the highlighted trendline confluence near 4560s needed to mark resumption of the broader uptrend. Review my latest S&P 500 Weekly Technical Forecast for a closer look at the longer-term SPX 500 technical trade levels.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy

-Written by Michael Boutros, Technical Strategist with DailyFX

Follow Michael on Twitter @MBForex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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