Dow drops on US fiscal concerns, natural gas futures keel over as EUR/JPY slips

​​​Dow is seen dropping 

​Having reached a 2 1/2 month high at 42,842, marginally above its 42,821 late March high, the Dow Jones Industrial Average has fallen back below its 200-day simple moving average (SMA) at 42,318 close to last week's low at 41,778 on US fiscal concerns. 

​The index is expected to come further off and fill its 41,899 to 41,512 early May price gap and may also revisit its 55-day SMA at 41,134 and its April-to-May uptrend line before recovering. 

​Minor resistance above the 200-day SMA at 42,318 can be spotted at Tuesday-to-Wednesday's price gap at 42,439-to-42,485.

​EUR/JPY expected to decline further 

EUR/JPY's recent decline from its mid-May high at ¥165.21 is taking it through its March-to-May uptrend line at ¥162.56 with the 55-day SMA and 19 May low at ¥162.18-to-¥162.15 about to be reached.  

​These are likely to soon give way with the late April-to-early May lows at ¥161.71-to-¥161.60 expected to soon be reached, as well as the 200-day SMA at ¥161.40. The 22 April low at  ¥160.99 may also be reached. If fallen through, a more significant top may be formed with the early April low at ¥158.31 being back in sight. 

​Immediate downside pressure should remain in play while Wednesday's high at ¥163.41 isn't overcome. 

​Slightly above this level minor resistance may be found around the 25 April high at ¥163.75 ahead of key resistance at ¥164.18-to-¥165.23, made up of the December-to-May highs.

​Natural gas futures under pressure 

US natural gas futures prices are in the process of keeling over and slipping back towards their 200-day SMA at 276.4. Below it support can be spotted at the 19 May low at 266.7. 

Were this level to be slipped through, the 25-to-28 April gap at 260.5-to-255.3 would likely get filled before the April low at 244.00 may be revisited. 

​Were Wednesday's high at 300.5 to be exceeded, though, the above scenario would likely be delayed while the March-to-May downtrend line at 310.8 may be probed. Slightly further up meanders the 55-day SMA at 315.3 which may also act as potential resistance as well as the 9 May peak at 326.1. While the latter level caps, the medium-term downtrend remains valid.​​