Dow consolidates below record high, EUR/JPY comes off its October peak as natural gas flies
Technical analysis of the Dow Jones Industrial Average as it consolidates below last week’s record high, as EUR/JPY comes off its October peak and natural gas prices continue to rally.
Dow Jones remains close to record high
The Dow Jones Industrial Average continues to range trade below last week's 48,040 record high which remains in focus while Friday's low at 47,348 underpins.
Were this minor support level to give way, the October-to-November uptrend line would be sliced through with the early-to-late October highs at 47,125-to-47,049 perhaps being back in sight. These highs may act as support, though.
Dow Jones daily candlestick chart
EUR/JPY comes off multi-decade high
EUR/JPY is seen coming off its ¥178.82 over 50-year high (euro equivalent) and probes its accelerated uptrend line at ¥177.38.
Since negative divergence on the daily Relative Strength Index (RSI) accompanied last week's high, the odds favour at least a minor retracement.
A slip through the accelerated uptrend line at ¥177.38 would likely engage the 29 October low at ¥176.64. Failure there on a daily chart closing basis may lead to a more significant top forming with the ¥175.00 region back in sight.
Resistance may be found around the ¥177.93-to-¥178.23 9-to-27 October highs, ahead of last week's ¥178.82 peak. A rise above it would probably lead to the ¥180.00 region being in focus.
EUR/JPY daily candlestick chart
Natural gas futures rally towards February peak
Over the last few sessions, US natural gas futures rallied strongly and are on track to reach their February peak at $388.60. Around this level the advance may at least short-term stall. If not, the early March high at $397.4 may be hit, as well as the March peak at $407.8.
Minor support may be spotted between the 13-to-17 January highs at $367.5-to-$368.8.
Natural gas daily candlestick chart
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