USDJPY
Let’s start today’s analysis with the USDJPY currency pair. Taking a look at the pair from a broader perspective, one can spot an inverse head and shoulders pattern. The pair finally broke above the resistance at 109.70 handle and as long as the price sits above it, the further upward move seems to be the base case scenario. The nearest resistance to watch is the 110.65 handle and it is marked with previous price reactions and the 78.6% Fibonnaci retracement. In case of a break higher, the upward move may accelerate and reach 88.6% retracement, or even 2019 highs at 112.4. On the other hand, pullback below the aforementioned support at 109.7, could trigger deeper declines. In such a scenario, the support at 108.3, which is marked with the lower limit of Overbalance structure, could be in play.
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USDJPY D1 interval. Source: xStation5
DE30
German stock market index launched this week with a minor upward move and managed to reach all time highs two days later. DE30 gained over 25% last year, and bulls are not stopping at the beginning of a new year. Early gains were quickly erased but DE30 managed to recover since. The resistance zone at 13 600 pts looks like a good place to start a bigger correccion move, but one should remember that the main trend remains upward. A break above the 13 600 pts handle could see upward move accelerate. The index trades at the highest level in history but potential long-term resistance can be found at 14500 pts - the 127.2% exterior retracement of the downward move launched at the beginning of 2018. On the other hand a return below 13 500 may encourage sellers to become more active and target area at 12 600 pts.
DE30 W1 interval. Source: xStation5
CD Projekt
Last but not least, let’s take a look at the Polish video games developer. CD Projekt has delayed the launch of its flagship game “Cyberpunk 2077” as it needs more time to make the game perfect. Stock opened 14% lower on Thursday (after the announcement) but managed to finish the session “just” 5.6% lower. Recovery continued the next day and the stock recouped all of the losses by the end of the previous week. As the bearish gap was covered, markets’ attention returns to the nearest resistance marked by ATH at 292 PLN. A quick rebound confirms strong upward trend CD Projekt has been enjoying over recent years.
CDR.PL D1 interval. Source: xStation5
