fb&XAUJPY Forecast | More news on the creation of a coronavirus vaccine devalued precious metals | IFCM Hong Kong

Technical Analysis &XAUJPY : 2020-11-24

Recommendation for XAU JPY:

Sell
Strong SellSellNeutralBuyStrong Buy

Below 1913

Sell Stop

Above 2033

Stop Loss

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Senior Analytical Expert
Articles 1722
IndicatorValueSignal
RSI Buy
MACD Sell
MA(200) Sell
Fractals Sell
Parabolic SAR Sell
Bollinger Bands Neutral

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, XAUJPY: D1 breached down the neutral range support line and the 200-day moving average line. A number of technical analysis indicators formed signals for further decline. We do not rule out a bearish movement if XAUJPY falls below the lower Bollinger band and its last low: 1913. This level can be used as an entry point. We can place a stop loss above the last 2 upper fractals, the upper Bollinger line and the Parabolic signal: 2033. After opening a pending order, we move the stop loss following the Bollinger and Parabolic signals to the next fractal maximum. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the 4-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (2033) without activating the order (1913), it is recommended to delete the order: some internal changes in the market have not been taken into account.

Fundamental Analysis

In this review, we propose to consider the XAUJPY Personal Composite Instrument (PCI). It reflects the price action of gold against the Japanese yen. Will the XAUJPY continue to decline?

The downward movement signifies the decline in gold prices and the strengthening of the Japanese yen. British AstraZeneca reported 90% effectiveness of its coronavirus vaccine. This led to the USD strengthening and devalued precious metals. Some investors believe that mass vaccinations will reduce the number of coronavirus cases. In turn, this can significantly reduce the package of financial aid to the US economy or postpone its allocation to corporations and US citizens. The dynamics of the yen will depend on the speech of Haruhiko Kuroda, the head of the Bank of Japan, on November 24, early morning. The Japanese currency may also be affected by Tokyo’s November inflation data, which will be released on November 27.

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.