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After gold prices hit an eight-year high on Wednesday this week, consolidation took over. Investors saw the US dollar gain traction following the majestic price action on Thursday. This created some turbulence for the precious metal especially with the ten-year United States Treasury yield diving sharply to 60-basis points in addition to ending the session at the third-lowest level in history. Besides, this was the lowest level since mid-April 2020. Panic continues to grip the US economy even as the COVID-19 curve continues to spike. Gold technical analysis Gold closed the session on Friday at 1,799.20 after a period of consolidation that followed a minor retreat from the eight-year high around 1,818.17. All indicators are pointing towards the dominance of sideways trading action. For instance, the RSI is motionless above the midline (50) after a dire retreat from levels within the overbought region. On the other hand, the MACD shows that the US dollar has the potential to continue gaining traction against gold. The indicator does not only feature a bearish divergence but also grinding towards the mean line (0.00). Consequently, the formation of a rising wedge pattern hints that a breakdown is in the offing. If support at the wedge pattern crumbles, we can expect gold to dive farther down. Support is anticipated at 1,790, the 50 SMA in the 4-hour range (1,788.13), the 100 SMA (1,774.08), 1,770 and 1,760. XAU/USD 4-hour chart    

USD/JPY is trading 0.25% lower in a mixed session for the dollar on Friday.The pair has been in a 2 big figure range for a month now. USD/JPY 4-hour chart USD/JPY seems stuck in a sideways range. In historical terms, if there was this much uncertainty in the world the yen would be going through the roof. In this new normal FX world, it seems there is lots of support for JPY ahead of 104.60 on the weekly chart. In more recent times 106.00 is a very strong zone and on the chart below any movement toward the area is met with some strong buying. Looking closer at the chart below, the buyers came in at 106.60 on Friday. If there is a break either side of this range it could give us a good indication of the future path of the pair. The indicators are looking pretty bearish at the moment. The Relative Strength Index has hit the oversold zone and since the indicator has moved back up and is tilting to the downside again. MACD histogram is in the red and the signal lines are under the mid-point, which is again bearish.  Additional levels