Commodity Futures Weekly Newsletter- For the week of May 19th, 2025
Yen Futures closed the week below trendline support.
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A publication by the Research Team at Capital Trading Group: 800-238-2610
Currencies
Japanese Yen Futures
Yen Futures close the week below Trendline Support.
Japanese Yen Futures show trendline support being tested and now broken through. A Daily close below the support line has been registered this week. With structural support nearby beneath trendline support, a close below 0.006796 was also registered, at 0.0067625.
Trendline support now broken
With a current RSI reading of 48.21, the move back below 50 is what was needed to feel that the supportive trendline would eventually give way to lower prices. The series of higher highs and higher lows is no longer intact while prices violated 0.006796, shaded in grey. Now violated, the January 2025 low of 0.006330 moves to key Support, much like the 107’06 corresponding level in 10 Year Bonds.
Structural support at 0.006796 has been breached
Both Bonds and Yen Futures broke below their respective Trendline Support. After a” retouch” of Trendline Support to close the week, a move below this week’s low of 0.006753 would add confidence that the next sizable move lower was in progress. The correlated 10 Year Bond level is 109’08.
Conclusion
The Daily close below trendline support would be the first sign needed to turn Bearish. The second sign, a Daily close below 0.006796 would be a strong indication that the rally from 0.0066330 in January of 2025 was complete. Use any breaks of 0.006753 to favor that outcome while lowered Resistance at 0.007058 remains in place.
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