The S&P 500 gaps higher
The S&P 500 returned to record territory as inflation cooled. This could mean that the Fed might cut interest rates later this year. A pop above 5250 has put the index back on track, prompting the short side to cover. A close above the recent peak would reinforce the bullish mood and resume the recovery after correcting over 300 points. On the downside, 5220 at the start of the breakout is vital in keeping the current momentum intact.
USDJPY breaks major support
The Japanese yen recouped some losses as US inflation fell towards the 3% target. A close below 155.50 on the daily chart signals a firm reversal and could pave the way for an extension towards 152.00. The psychological level of 155.00 would be the first hurdle as a double bottom has emerged. The RSI’s repeatedly oversold status could briefly let bulls catch their breath. A break back towards 156.60 at the previous swing high will be the first target for a retracement.
XAGUSD gets another spike
Silver spiked higher as traders remain optimistic that the US will avoid a recession. After hitting a roadblock at 28.80, a bearish RSI divergence suggests that this could be a false break. After briefly bouncing above 29.00, the retracement began with price action finding a way back to 28.50. The psychological level of 28.00 awaits a potential sell off if bears step in. 28.90 is the first resistance to lift should a rally ensue.
