Forex trading JPY on elections and trade talks – XAU/USD in ascending triangle [Video]

In today’s Market Outlook, let’s take a look at Forex Trading on Bitcoin, BTC/USD, Gold, XAU/USD, EUR/USD, NZD/USD, GBP/JPY, and NZ/DJPY.

Over the weekend, an election in Japan did not go as planned for the ruling party.

We saw JPY volatility and a new threat with a US/Japan trade deadline looming.

This looks like a gap trade, but if we zoom into the 30-minute chart, we can see the volatility.

The uptrend is obvious, but be careful…anything can happen before the deadline of 1 August.

Next week, 31 July, we have a BoJ interest rate decision, and inflation is picking up in Japan…hence the political crisis.

Take a look at all JPY pairs like USDJPY and GBPJPY, and you will see that every pair had this volatility.

GBPJPY opened with a genuine gap, and you may want to treat it as a range trading opportunity.

But, take a look at GBP as it is weak these days.

Last time we looked at a potential short opportunity on many USD pairs, and look what happened.

Price action bounced off the upper trend line and fell on pairs like NZDUSD and EURUSD.

Speaking of EURUSD, we have economic news on Thursday affecting both currencies, including lots of PMIs and an interest rate decision from the ECB.

We are still monitoring this ascending triangle on gold, but keep an eye on geopolitical events and USD.

We can’t quite call a symmetrical pennant on Bitcoin, as we only have 2 intersection points each on the trend lines.

We have some bullish technicals, and we will keep an eye on support and resistance and news of new crypto legislation globally.