Technical Analysis for USDJPY and GOLD

USDJPY

• USD/JPY reached new multi-year extremes late last week before stalling near a key long-term trendline connecting the 2002 & 2007 peaks around 109.50
• Our near-term trend bias remains higher in USD/JPY while above 107.40
• A close over 109.50 is needed to set up a new leg higher in the rate
• An important turn window is eyed next week
• A close under 107.40 would turn us negative on the rate

USD/JPY Strategy: Like holding reduced long positions above 107.40

GOLD (XAUUSD)

• XAU/USD has come under steady pressure to trade at its lowest level since the start of the year
• Our near-term trend bias remains lower while below 1240
• Key downside pivots look to be 1203 and 1193
• A cycle turn window of some importance is eyed over the next day or so
• A close over 1240 would turn us positive on the metal