US 10 year yields have had a peep above 2.70% and along with stocks finding their mojo again USD/JPY keeps its bid.
We could be seeing some relief that the PCE data, which is closely watched by the Fed, held no shocks and in fact, consumption and income confirm what a weak price environment there is in the US.
Anyway, the levels are still in play but a break above 103 in USD/JPY might trigger off a round of stop blasting.
Gold is seemingly undecided about what it wants to do and has found support at the 50 fib at 1286 just as tough as resistance at 1300. Just as important is that we’re holding below the 200 dma at 1296 and if we see the day out under it’s going to give the bear impetus to have a crack at the downside.
Gold daily chart 28 03 2014
If we blow below then 1273 and 1271 become the levels to watch being the 100 dma and prior resistance level.
