Daily Technical Analysis January 8th 2024

1. USD/JPY Analysis: 

News Summary: 

The yen had its worst week, leading the decline among G10 currencies, weakening for four consecutive sessions as the impact of the earthquake reduced the possibility that the Bank of Japan will soon end negative interest rates. The earthquake has created some uncertainty, and the BOJ may decide to take some time to assess the influence of the earthquake. The possible policy response will be fiscal spending to promote growth, but it remains confident that Japan will normalize monetary policy in 2024.  

Trend Analysis: 

We can see USD/JPY failed to break through and dropped after the nonfarm payroll data released, but it is still running above 48 hours moving average. The impact of the earthquake will continue to affect Japanese yen, the buy limit could be used, stop loss is necessary.   

Today's Key Price Levels: 

Key Support Levels: [143.00] 

Key Resistance Levels: [146.10] 

Pivot Points [143.70] 

2. Gold Analysis:  

News Summary: 

The release of US nonfarm payroll report had an impact on gold market. Gold price fell as the labour market performed better than expected, undermining expectations for the Federal Reserve to cut interest rates quickly this year. The gold price has given up most of the gains from previous weeks as market further assesses economic conditions.  

Trend Analysis: 

We can see the gold failed to break through, it ran below 48 hours moving average on H4 chart. At the same time, the MACD double line and energy column also hovered below the zero axis. The gold bulls still have the overall advantage, but it is gradually fading. As a result, the sell limit could be placed, stop loss is mandatory.   

Today's Key Price Levels: 

Key Support Levels: [2010] 

Key Resistance Levels: [2055] 

Pivot Points [2047]