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Spread bets and 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 spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

​S&P 500 surges ahead while silver price stalls at key resistance and USD/JPY bounces off support

​​​S&P 500 surges ahead amid hopes of Trump-Xi talks while silver price stalls at key resistance and USD/JPY bounces off support.

SIlver Source: Adobe images

Written by

Axel Rudolph FSTA

Axel Rudolph FSTA

Senior Technical Analyst

Article publication date:

​​​S&P 500 trades in 3-month highs

The S&P 500 continues its ascent amid hopes of a Trump-Xi call despite the former doubling his steel tariff to 50%, except for the UK.

The 12 February low at 6,003 and the 26 February high at 6,009 remain in focus, a rise above which would put the 6 January high at 6,021 on the cards ahead of the late December peak at 6,049.

Minor support is seen around the late May high at 5,943 and along the April-to-June uptrend line at 5,890.

While last week's low at 5,844 underpins, bullish momentum remains dominant.

S&P 500 chart Source: TradingView

​USD/JPY bounces off support

USD/JPY's drop from last week's ¥146.28 high has taken it to Tuesday's ¥142.38 low, to marginally above its ¥142.12 late May low, before regaining previously lost ground.

Immediate resistance is seen around the 55-day simple moving average (SMA) at ¥145.23 ahead of the early May high at ¥145.92. These levels we expect to cap the upside. If not, last week's high at ¥146.28 may be revisited.

While the next higher long-term downtrend line at ¥146.76 caps, the overall trend remains bearish.

A fall through this and last week's lows at  ¥142.38-to-¥142.12 as well as the ¥141.97 late April low would likely lead to the ¥140 region being back in sight.

USD/JPY chart Source: TradingView

​Silver price hits key resistance zone

The price of spot silver shot up at the beginning of the month and revisited its key $34.5880-to-$34.8690 per troy ounce resistance area. It consists of the October-to-March highs and as such may cap once more.

If this resistance zone were to be exceeded, though, the October 2012 high at $35.3992 would be next in line.

As long as the $34.5880-to-$34.8690 resistance area caps, the 22 May high at $33.7020 may offer support with the late April peak at $33.6955.

Spot silver chart Source: TradingView