S&P 500 positive for year, USD/JPY resumes descent while silver price sidelined
S&P 500 trades back in the green for the year as USD/JPY resumes its descent and the silver price remains sidelined amid a weakening US dollar.
S&P 500 positive for the year
The S&P 500, together with the Nasdaq 100, are trading back in positive territory for the year.
In the short-term the index may soon lose upside momentum, though, as it nears the 5,909-to-5,923 resistance area which is made up of the 3 and 25 February lows.
The US index is also as overbought on the daily Relative Strength Index (RSI) as it was in July 2024 and has left a huge gap open between Friday's 5,691 high and Monday's 5,786 low.
Potential slips may find support between the January low and the late March high at 5,786-to-5,773 ahead of the 200-day simple moving average (SMA) at 5,753 and Thursday's 5,720 high.
Resistance above the 5,909-to-5,923 resistance zone may be found around the March high at 5,986.
USD/JPY resumes its descent
USD/JPY's sharp rally over the past few days has taken it to ¥148.65, a six-week high. From this level the cross is seen to retreat with the 55-day SMA and the March low at ¥146.54-to-¥146.51 being in focus ahead of the 2 May high at ¥145.92.
While Monday's high at ¥148.65 isn't overcome, its low at ¥145.71 is expected to be slipped through in the coming days. This would indicate that the April-to-May rally has probably run its course with the ¥140.00 region being longer-term back in sight.
A currently unexpected rise above ¥148.65 would put the 200-day SMA at ¥149.67 on the map.
Silver price expected to further range trade
The price of spot silver continues to sideways trade whilst oscillating around its 55-day SMA at $32.67 per troy ounce.
For a break out of the currently forming ascending triangle to be seen, last week's high at $33.25 would need to be exceeded on a daily chart closing basis. In this scenario the late April high at $33.69 is also expected to be bettered with the March peak at $34.58 being back in focus.
Were a slip through this and last week's lows at $31.89-to-$31.67 to occur instead, the 200-day SMA at $31.26 would likely be targeted.
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