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June 22, 2022 Forex

Gold Price Exposes to Risk of Losses, USD/JPY Ascends Higher

Key Take-Aways

  • Gold price is experiencing resistance close to $1850 and $1,860.
  • On the 4-hour chart, an ascending trendline is building up with support close to $1,835.
  • USD/JPY improved and transacted to a new multi-year high beyond 136.00.
  • The UK CPI will likely rise by 9.1% in May 2022 (YoY), up from 9.0%.

Gold Price Technical Analysis

The price of gold experienced a sharp decline from the $1,875 resistance region against the US Dollar. It transacted at a price below the $1,850 support and strived to drop towards $1800 but was wedged by strong support levels.

On the 4-hours chart of XAUUSD, it shows that the price resolved beneath the $1,850 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).

Lately, it transacted as low as $1,804 then began an upside correction. A ride above the $1,825 and $1,830 levels was seen. There was a short-term projection above the $1,845 level and the 100 simple moving average (red, 4-hours).

Still, gold is constrained by a strong resistance near the $1,850 level. A confirmed move above the $1,850 resistance could trigger a bull run above the $1,860 resistance region. The succeeding resistance level stays close to $1,875.

If no further uptrend is experienced, the price will likely decline in gains and test the $1820 support. The succeeding key support is close to the $1,815, beneath which further price decline will possibly set in towards $1,800.

For USD/JPY, a new increase was observed and it ascended higher to a fresh multi-year high above 136.00.

Economic Releases to Watch Today

  • UK Consumer Price Index for May 2022 (YoY) – Forecast +9.1%, versus +9.0% previous.
  • UK Core Consumer Price Index for May 2022 (YoY) – Forecast +6.0%, versus +6.2% previous.
  • Canadian Consumer Price Index for May 2022 (MoM) – Forecast +1.0%, versus +0.6% previous.
  • Canadian Consumer Price Index for May 2022 (YoY) – Forecast +7.4%, versus +6.8% previous.
Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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