Technical Outlook with Charts | zForex

[Z Forex]

The Yen Adds to BOJ Pressure (07.22.2026)​

US stock futures slipped ahead of earnings from Alphabet, Tesla, GE Vernova, Philip Morris, and Texas Instruments. Super Micro Computer jumped nearly 20% after strong results, while Pegasystems fell more than 13%. On Tuesday, the Nasdaq gained 1.29%, supported by strong chip export data and solid earnings from 3M and GM.

Japan's 10-year yield rose to around 2.74%, a one-week high, following higher US Treasury yields and rising oil prices. A weaker yen at a fresh 40-year low added to expectations of further BOJ tightening. Traders also looked ahead to a JPY 300 billion 40-year bond auction after June's trade balance returned to deficit.

The U.S. 10-year Treasury yield held near 4.63% as higher oil prices kept inflation concerns in focus. Trump played down the prospect of near-term talks with Iran, while disruptions in the Red Sea and attacks on Russia's Caspian Pipeline added to supply concerns. ADP data showed hiring slowed for a fourth straight month.

The US Dollar Index remained above 101, rising for a fourth straight session as higher Treasury yields continued to support the currency. Ongoing conflict involving Iran, shipping disruptions in the Red Sea, and weaker ADP employment data kept expectations for a September Fed rate hike above 55%.

Economic Calendar​

Euro Waits on Frankfurt​

The euro held above $1.14 ahead of Thursday's ECB decision. Rates are expected to remain unchanged after June's hike, although markets still price two more increases by year-end, starting as early as September.

Hopes for renewed US-Iran talks also remained in focus as oil prices continued to influence the inflation outlook.

The first resistance is at 1.1430, while support begins at 1.1380.

Gold’s Climb Continues​

Gold approached $4,200 as higher oil prices kept inflation concerns in focus. Trump dismissed the prospect of near-term talks with Iran and warned of further strikes, while disruptions in the Red Sea and attacks on Russia's Caspian Pipeline added to supply concerns.

Slower ADP hiring also left markets pricing over a 55% chance of a September Fed rate hike.

First resistance is at $4,160, with initial support near $4,100.

No Relief for the Yen​

The yen weakened beyond 163 per dollar, its lowest level since October 1986, keeping markets on alert for possible intervention. Middle East tensions pushed oil prices higher, weighing on Japan's import-dependent economy, while a stronger dollar and rising Treasury yields widened rate gaps and encouraged carry trades.

Fiscal concerns over new spending plans and the BOJ's cautious policy approach added further pressure, as June's trade balance slipped back into deficit.

Initial resistance stands at 163.30, while the first support is at 162.80.

A New Cabinet, A New Direction​

Sterling slipped below $1.34, touching a weekly low as traders digested Andy Burnham's first cabinet appointments. His decision to name John Healey as Chancellor lifted expectations for higher defence spending, although both emphasized fiscal discipline.

June public borrowing also came in below forecasts.

From a technical view, resistance stands near 1.3430, with support around 1.3340.

Silver Still Dependent on Macro Data​

Silver climbed toward $60 as stronger oil prices kept inflation concerns in focus. Trump's comments on Iran, disruptions in the Red Sea, attacks on Russia's Caspian Pipeline, and softer ADP employment data all supported expectations of over a 55% chance of a September Fed rate hike.

From a technical view, resistance stands near $60.50, while support is located around $58.50.

Brent Crude Oil​

Brent rose above $92, hitting nearly six-week highs as supply risks widened beyond the Middle East. Trump dismissed near-term Iran talks and warned of more strikes, while a Kuwaiti tanker was struck in Hormuz.

Traders also keep an eye on attacks on Russia's Caspian Pipeline terminal, a key export hub for Kazakh crude.

Resistance is seen at 93.40, while the nearest support stands at 90.00.

Nasdaq 100​

The Nasdaq-100 trades at 29,000, rebounding roughly 1.93% after defending major support, working to reverse its multi-week correction from June's peak.

Markets await crucial Q2 earnings from AI leaders and Tesla, while semiconductor pullbacks and Middle East tensions weigh on sentiment. Momentum stays neutral-to-bearish under a broader "double top" structure.

Resistance stands at 29,200, while the nearest support is located at 28,850.

Chinese Yuan (USD/CNH)​

USD/CNH trades stable at 6.7730, holding a tightly controlled downward trajectory as the yuan shows resilience on steady PBoC intervention.

Cooling US inflation points toward an eventual Fed pause, though hawkish warnings cap dollar losses, while the DXY remains stuck in consolidation. Momentum stays neutral-to-bearish within a broader downtrend.

Resistance stands at 6.7750 while the nearest support is located at 6.7600.

Bitcoin (BTC/USD)​

Bitcoin trades near $66,300, posting modest intraday gains as it exits a descending channel, supported above its 50-day moving average.

Institutional spot ETF inflows continue offsetting geopolitical headwinds, while bullish momentum (RSI near 60 and positive MACD) keeps short-term technicals in "Strong Buy" territory, with resistance near $67,200 and upside targeting $70,000.

First resistance is seen at 67,200, with initial support near 65,300.

 

[Z Forex]

Momentum Stocks Face a Sharp Reality Check​

The strongest momentum stocks have taken the biggest hit in the latest market sell-off. Shares that had led the market for months are now seeing the heaviest selling as investors rush to reduce exposure.

According to Societe Generale data, the top 50 momentum stocks have fallen by close to 30% since late June. The weakness has not been limited to one region. Similar selling has appeared across global equities, developed markets, and markets outside China.

The size of the decline makes more sense when looking at the rally that came before it. Some of the strongest names had gained between 80% and 140% in only three months. Many were linked to popular themes such as artificial intelligence, technology, defence, and high-growth sectors.

This is a common risk with crowded trades. When too many investors own the same stocks, even a small disappointment can trigger heavy selling. Profit-taking begins, stop-losses are activated, and the decline can quickly gain speed.

The main lesson is not that momentum investing has stopped working. It is that entry price and position size still matter. Stocks that rise too far and too fast can become vulnerable, even when the long-term story remains attractive.