FxWirePro: USD/JPY holds gains above 5-DMA amid souring risk sentiment, BoJ keeps policy steady, revises up inflation forecasts
FxWirePro- Gold Daily Outlook
Ichimoku analysis (4-Hours chart)
Gold consolidated in a narrow range between $1761.90 and $1787 for the past three days. The improving risk sentiment due to easing Omicron virus concerns and hopes of tapering by the Fed is preventing the yellow metal from further upside. The US dollar index holds above 96 levels and any breach below 95.50 confirms further bearishness. The US 10-year yield pared some of its losses and gained more than 8% from a low of 1.33%. The yellow metal hits an intraday low of $1776 and is currently trading around $1777.81
Factors to watch for gold price action-
Global stock market- Bullish(Negative for gold)
US dollar index –Bullish (negative for gold)
US10-year bond yield- Bullish (negative for gold)
It faces strong support at $1760, violation below targets $1740/$1700.Significant trend continuation only below $1675. The yellow metal facing strong resistance $1792, any violation above will take to the next level $1800/$1815/$1835/$1860/$1900 is possible.
It is good to sell on rallies around $1800-01 with SL around $1815 for TP of $1762/$1740.