CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

USDJPY, Silver Forecast: Positive Trends on Dollar and Metals

Article By: ,  Market Analyst
Monday 9:14 AM

Key Events

  • Tight US Election Reports
  • Ongoing Geopolitical Conflicts
  • US Retail Sales (Thursday)
  • Japanese National Core CPI (Friday)
  • Technical Analysis: USDJPY, XAGUSD

JPY Outlook

The recent rebound in USDJPY has been bolstered by Japan’s new prime minister signaling support for continued monetary easing, alongside positive U.S. economic data suggesting a less aggressive rate cut cycle. With Japanese elections approaching on October 27th, the likelihood of a rate hike at the Bank of Japan's October 31st meeting is decreasing, weakening the JPY trend.

Silver Outlook

In tandem with the Gold rally in the midst of critical market uncertainties ahead of US elections and ceasefire hopes, Silver remains on track within the borders of its primary uptrend. Silver is eyeing new 2024 highs following the firm breakout above the 33-resistance barrier.

Technical Analysis

USDJPY Forecast: 3Day Time Frame – Log Scale

Source: Tradingview

In line with the U.S. Dollar Index (DXY) recovery from December 2023 lows, USDJPY has respected the 140-support zone from December and is hovering just below the 150 level. A close above 150 could trigger a bullish continuation toward resistance at 151.30 and 152.30, aligning with the trendline formed from consecutive lows between January 2023 and 2024.

The 3-day Relative Strength Index (RSI) above 50 supports this bullish outlook, with an eventual alignment with 154 if USDJPY closes above 152. On the downside, any drop is expected to find support between 147.60 and 146.50. A deeper correction could test the 144 zone, before potentially shifting the chart toward a bearish/neutral bias.

Silver Forecast: 3Day Time Frame – Log Scale

Source: Tradingview

Silver has retested the upper boundary of its expanding consolidation pattern from May to September 2024, confirming a bullish breakout. Respecting its primary uptrend and benefiting from its positive correlation with gold, silver remains poised for further gains.

Bullish Scenario: A break above the 2024 high of 33 could extend the uptrend toward 34.60 and 36.20.

Bearish/Corrective Scenario: a close below the 30-ground can extend a bearish correction towards potential support levels 28.80, 27.80, and 26.80.

--- Written by Razan Hilal, CMT – on X: @Rh_waves

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024