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Yen came under renewed and intense pressure during Asian session, as domestic equities surged more than 3% to new record highs following the market reopening. The catalyst behind the equity rally — and Yen’s decline — remains growing conviction that Japanese Prime Minister Sanae Takaichi is preparing to call a snap general election in February. That expectation has extended the so-called “Takaichi trade” that began last year after she became Japan’s first female Prime Minister.

The trade rests on a familiar set of assumptions. Early elections are expected to deliver a stronger mandate for fiscal expansion, driving equity gains, pushing bond prices lower, and weakening Yen. Takaichi’s strong public support has reinforced expectations that the ruling bloc would emerge with enhanced authority. Speculation has now converged on a relatively narrow window. Parliament dissolution is tentatively expected around January 23, with election dates mostly cited as February 8 or February 15, according to Japanese media and market chatter.

Regarding the selloff in Yen, Japanese authorities have responded with verbal warnings, but the market response has been dismissive. Traders appear unconvinced that rhetoric alone will halt a move driven by political conviction and global risk appetite. Finance Minister Satsuki Katayama said she raised concerns about Yen’s one-sided depreciation in talks with US Treasury Secretary Scott Bessent. Her comments were interpreted as hinting at possible US tolerance for intervention, though no concrete policy signals followed. Separately, Deputy Chief Cabinet Secretary Masanao Ozaki warned that authorities stood ready to act against excessive currency moves, including speculative ones. For now, markets continue to test those limits.

Elsewhere, US tariff headlines also crossed the wires. President Donald Trump warned that any country doing business with Iran would face an immediate 25% tariff on all trade with the US, declaring the measure “final and conclusive.” He added that the tariffs are "effectively immediately" even though details remain scarce for now.

In currency markets, Yen remains the clear underperformer for the week so far. Dollar follows as the second-weakest, weighed down not by data but by lingering concerns over Fed independence and US institutional credibility. Euro has also softened modestly, though losses remain contained. On the other side of the ledger, Kiwi is the strongest performer, supported by upbeat domestic business confidence data. Sterling and Swiss Franc are also holding firm. Aussie and Loonie sit broadly in the middle.

Attention now turns to US December CPI later today, though expectations for a market-moving surprise appear limited. Traders have already pared back bets on a March rate cut, with probabilities sitting below 30% following a run of mixed but resilient US data. There is little urgency for the Fed to act, and inflation would need to surprise decisively in either direction to alter that view.

More importantly, CPI is competing with far louder narratives. Political risk, tariff uncertainty, and questions around Fed independence are commanding investor attention. In that context, even a firm inflation print may prove secondary unless it materially shifts the broader policy outlook.

In Asia, Nikkei rose 3.10%. Hong Kong HSI is up 0.70%. China Shanghai SSE fell -0.64%. Singapore Strait Times rose 0.73%. Japan 10-year JGB yield rose 0.075 to 2.172. Overnight, DOW rose 0.17%. S&P 500 rose 0.16%. NASDAQ rose 0.26%. 10-year yield rose 0.016 to 4.187.

Australia Westpac consumer sentiment deteriorates, RBA won't tighten precipitously

Australian consumer sentiment weakened further at the start of the year, highlighting growing anxiety over the interest-rate outlook. The Westpac Consumer Sentiment Index fell -1.7% mom to 92.9 in January, pushing sentiment deeper into pessimistic territory.

Westpac pointed to a sharp shift in rate expectations as the main drag. Nearly two-thirds of consumers who expressed a view now expect mortgage rates to rise over the next 12 months, more than double the share seen back in September.

For policy, Westpac expects the RBA to stay on hold when it meets on February 2–3, and through the remainder of 2026. While the RBA has flagged readiness to tighten if inflation proves stubborn, softer labor market conditions and limited price pressures across many goods and services should allow inflation to drift back into the 2–3% target range without the need to "tighten precipitously."

NZIER confidence hits 10-year high, RBNZ to hold until H2 hike

New Zealand business confidence surged in Q4, reinforcing signs that an economic recovery is starting to form. The New Zealand Institute of Economic Research (NZIER) said a net 39% of firms expect better general economic conditions in the months ahead, a sharp rise from 17% in the September quarter and the strongest reading since March 2014.

NZIER noted that while a gap remains between headline confidence and firms’ own domestic trading activity, the direction of travel is clearly improving. The survey suggests the impact of earlier interest-rate cuts is now filtering through the broader economy, lifting sentiment even as activity indicators lag.

Inflation signals was reassuring. Cost and pricing indicators point to broadly contained pressures in the December quarter, with cost pressures easing and a net 37% of firms reporting higher costs.

With demand recovering but inflation subdued, NZIER expects no further OCR cuts this cycle, forecasting the RBNZ’s Official Cash Rate to trough at 2.25% before hikes begin in the second half of 2026.

GBP/JPY Daily Outlook

Daily Pivots: (S1) 212.07; (P) 212.55; (R1) 213.47; More...

GBP/JPY's rally accelerates higher today and intraday bias on the upside. Current up trend should now target 100% projection of 184.35 to 205.30 from 199.04 at 219.99 next. For now, outlook will stay bullish as long as 210.28 support holds, in case of retreat.

In the bigger picture, up trend from 123.94 (2020 low) is in progress. Next target is 61.8% projection of 148.93 (2022 low) to 208.09 (2024 high) from 184.35 at 220.90. On the downside, break of 205.30 resistance turned support is needed to indicate medium term topping. Otherwise, outlook will stay bullish even in case of deep pullback.

The second week of the new year started with a lot of jitters and soul-searching as Donald Trump stepped up pressure on the Federal Reserve (Fed), sending the DoJ after Fed Chair Jerome Powell over the Fed’s HQ renovations. But remember: Powell stood up for himself and made it very clear that the allegations had more to do with Trump’s frustration that the Fed is not cutting interest rates at the speed he desires — a pace that would better serve his political ambitions.

And it’s striking how powerful politicians are not told by those around them that the Fed cannot simply cut rates without consequences. Doing so would — leaving reputational issues aside — revive inflation and make matters worse. It wouldn’t help solve the cost-of-living crisis, it wouldn’t bring inflation down, and it wouldn’t make housing more affordable. It would have the opposite effect.

This is why we are seeing the US yield curve steepen in response to serious attacks on the Fed’s independence. The long end of the curve is rising faster than the short end on expectations that aggressive rate cuts today would push down short-dated yields, but ultimately fuel inflation and require tighter policy further down the road.

The US dollar is also feeling the pinch from the turmoil around the Fed. The debasement trade continues as investors lose confidence in a weakened Fed, which would be forced into looser monetary policy — resulting in weaker growth and higher inflation. I found the latest reactions from former Fed heads — iconic names such as Janet Yellen, Ben Bernanke and Alan Greenspan — exceptionally sincere. They warned that “this is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies.”

If you have any doubt, Turkey is a striking example of what happens when a country undermines its central bank and hands control to a president who insisted that “higher rates cause inflation,” pointing to Japan as historical evidence. Of course, Japan’s liquidity trap had nothing to do with Turkey’s economic fundamentals. Outcome? Inflation exploded, the lira collapsed — and not into golden dust — and the country has been steadily getting poorer since then.

Could the same happen to the US? The Titanic was made of iron, Sirs — and yes, it sank.

The debasement trade — the trade of a weakening US — is also boosting appetite for hard commodities. Gold and silver traded at fresh record highs yesterday, with silver consolidating near $85 per ounce this morning. I think it’s only a matter of time before the white metal tests the $100 mark. There is little to stop the debasement trade as headlines worsen by the day.

Another example of a fallen star is Great Britain. Even though institutions remain strong, trust in — and appetite for — sterling deteriorated so badly after Brexit that reversing the trend looks extremely difficult. So again, yes: the Titanic can sink. And this time, the consequences would be global. The US dollar is involved in roughly 90% of global FX transactions, so the ripple effects could be enormous.

Turning to US equities, markets gap-opened lower yesterday, as rising rate-cut expectations are only half-good news. But buyers stepped back in, particularly into tech names helped by a weaker dollar, and the S&P 500 closed the session at a fresh record.

Make no mistake: the cheap dollar is powering part of this rally. While S&P 500 gains look impressive in nominal terms, the picture changes once returns are converted into other major currencies. The SMI, for example, may look unappetizing at first glance, but the Swiss index returned more than 15% last year, while the S&P 500 lost value in Swiss-franc terms. This is why hedging USD exposure matters. The US dollar is no longer the automatic safe haven it once was. In a selloff today, there is little reason to expect capital to flow into the dollar. Gold and silver look far more likely to absorb safety flows.

Today, the US releases its latest CPI data, while big banks kick off earnings season, with JPMorgan reporting Q4 results — just a day after Trump suggested credit-card interest rates should be capped at 10%, a comment that sent related stocks sharply lower. While last year was strong for trading and deal-making revenues, investors will focus on banks’ economic outlook, loan-loss provisions, and views on AI productivity, credit quality, margins and capital deployment. Their guidance could set the tone for earnings season, as investors look for proof that Big Tech deserves its elevated valuations.

The S&P 500 is expected to deliver 8.3% earnings growth this quarter — the tenth consecutive quarter of positive EPS growth. Excluding the Magnificent Seven, earnings growth would fall to 4.6%. But expectations for coming quarters remain optimistic, helping avert a broader selloff despite unhelpful headlines — alongside continued liquidity support from the Fed. So I wouldn’t necessarily sell America, but I would hedge US dollar risk.

In Japan, markets are shining as reports that PM Takaichi may dissolve the lower house and call a snap election boost sentiment. A strong victory could unlock greater fiscal stimulus, giving rise to what some are calling the “Takaichi rally.” Tech stocks are leading gains, with the Topix up more than 2.5% at the time of writing, as she prioritises technology and defence investment. But the yields are to keep in mind: the 10-year JGB yield jumped to 2.16% this morning and the USDJPY is approaching the 159 level — a move that could soon trigger official pushback. Caution is warranted for those shorting the yen at current levels.

And a quick word on the risks posed by rising Japanese yields for global markets:
Normally, rising JGB yields increase the risk of a global selloff, as higher domestic yields raise the incentive for large Japanese investors to repatriate capital and lock in more attractive returns at home. Today, however, global liquidity remains so ample that this channel matters less than it normally would.

In focus today

In the US, December CPI is expected to rise, reversing November distortions from data delays and Black Friday discounts. We forecast headline CPI at +0.3% m/m SA (2.7% y/y) and core CPI at +0.4% m/m SA (2.8% y/y), above consensus. While an even higher reading cannot be ruled out, any unusually strong monthly figures should be viewed as distorted. Energy prices are expected to continue capping headline inflation. Fed speeches by Musalem and Barkin are scheduled for the evening.

In France, the prime minister faces two motions of no confidence over the government's handling of the EU's Mercosur trade agreement, though both are unlikely to pass due to political divisions. Meanwhile, uncertainty surrounds the timing of a potential no-confidence vote tied to the 2026 budget, as PM Lecornu may invoke article 49.3 to bypass parliamentary approval and adopt the budget. Our base case remains that a 2026 budget will eventually be passed without new snap elections and include a budget deficit of around 5.4% of GDP.

Economic and market news

What happened overnight

In geopolitics, President Trump announced that any country conducting business with Iran will face a 25% tariff "on any and all business being done with the US". According to his post on Truth Social, the tariff on imports from Iran's trading partners is effective immediately. However, Trump provided no further details, including whether the tariff would apply universally to all of Iran's trading partners. Currently, the only secondary tariff in place targets India for purchasing Russian oil. The announcement comes ahead of a much-anticipated Supreme Court ruling on the legality of many of Trump's broader tariffs.

Orsted, the Danish renewable energy company, is set to resume a major wind turbine project in the US, despite efforts by the Trump administration to shut it down. On Monday evening, a court ruling overturned the construction halt affecting two of Orsted's wind farms in the US. The judge granted approval for Orsted to continue work on the Revolution Wind project, which is expected to be fully completed in the second half of 2026.
What happened yesterday

In the euro area, investor sentiment showed a stronger-than-expected improvement in January, as the Sentix Investor Confidence indicator rose to -1.8 (cons: -4.9, prior: -6.2). This marks the highest level since July and signals a positive start to 2026, with improved sentiment reflected in broad equity indices.

In Denmark, CPI inflation dropped to 1.9% in December from 2.1% in November, driven by a sharp decline in fuel prices. Food prices continued their downward trend, falling another 2% in December, mirroring last year's movement. Looking ahead, January inflation is set for a big dip as the removal of the electricity tax takes effect, likely bringing inflation close to 1%.

In Japan, rumours of a snap election are circulating, with LDP members suggesting PM Takaichi may dissolve the Lower House when it reconvenes on 23 January. Her cabinet enjoys strong public support, making this a good opportunity to aim for a parliamentary majority. However, this strategy carries risks, as seen in the political fallout for her predecessor after a similar move in autumn 2024. These uncertainties have already weighed on the yen, which traded weaker on Friday amid speculation. A shift to election campaigning could amplify political instability, posing further risks to JPY in the near term.

Equities: Global equities staged a late-session rally to end the day 0.2% higher. The early part of the trading session saw remarkable stability in light of the US DoJ's subpoena of the Fed. Even the VIX was, after a brief spike, grinding lower through the day. As such the "relentless" rally in equities this year continued. S&P500 ended 0.2% higher, Nasdaq 0.3% higher, Russel2000 0.4% higher and Stoxx600 0.2% higher. Futures are marginally lower overnight. Overnight, the yen declined following media reports on new PM Takaichi intends to call for snap elections.

FI and FX: USD/JPY has moved higher overnight from the 158.00 levels towards 158.75 (weakest since 2024) and Japanese yields have risen, with the 10y JGB about 6bp higher, as reports suggest PM Takaichi may call for snap elections soon. EUR/USD trades rather stable within a 1.1660 and 1.1670 range overnight and US yields are also steady overnight with 10y UST at 4.18%. In the near-term, the developments around the DoJ subpoenas sent to the Fed may overshadow macro releases, including today's US CPI figures. In Scandies, EUR/SEK has dipped below 10.70 with the next strong support level at the 2025 low (3 April) at 10.6652.

Australian consumer sentiment weakened further at the start of the year, highlighting growing anxiety over the interest-rate outlook. The Westpac Consumer Sentiment Index fell -1.7% mom to 92.9 in January, pushing sentiment deeper into pessimistic territory.

Westpac pointed to a sharp shift in rate expectations as the main drag. Nearly two-thirds of consumers who expressed a view now expect mortgage rates to rise over the next 12 months, more than double the share seen back in September.

For policy, Westpac expects the RBA to stay on hold when it meets on February 2–3, and through the remainder of 2026. While the RBA has flagged readiness to tighten if inflation proves stubborn, softer labor market conditions and limited price pressures across many goods and services should allow inflation to drift back into the 2–3% target range without the need to "tighten precipitously."

Full Australia Westpac consumer sentiment release here.

New Zealand business confidence surged in Q4, reinforcing signs that an economic recovery is starting to form. The New Zealand Institute of Economic Research (NZIER) said a net 39% of firms expect better general economic conditions in the months ahead, a sharp rise from 17% in the September quarter and the strongest reading since March 2014.

NZIER noted that while a gap remains between headline confidence and firms’ own domestic trading activity, the direction of travel is clearly improving. The survey suggests the impact of earlier interest-rate cuts is now filtering through the broader economy, lifting sentiment even as activity indicators lag.

Inflation signals was reassuring. Cost and pricing indicators point to broadly contained pressures in the December quarter, with cost pressures easing and a net 37% of firms reporting higher costs.

With demand recovering but inflation subdued, NZIER expects no further OCR cuts this cycle, forecasting the RBNZ’s Official Cash Rate to trough at 2.25% before hikes begin in the second half of 2026.

Full NZIER survey release here.

Key Highlights

• Gold started a fresh surge and traded to a new all-time high above $4,600.
• It cleared a key contracting triangle with resistance at $4,480 on the 4-hour chart.
• WTI Crude Oil prices are still struggling to recover above $60.00.
• The US CPI could increase 2.7% in Dec 2025 (YoY).

Gold Price Technical Analysis

Gold prices started a fresh rally above $4,450 and $4,500 against the US Dollar. It settled above $4,500 and gained momentum for a new uptrend.

The 4-hour chart of XAU/USD indicates that the price cleared a key contracting triangle with resistance at $4,480. The bulls took control and pushed the price to a new all-time high above $4,610. The price tested the 1.236 Fib extension level of the last downside correction from the $4,549 swing high to the $4,275 low.

On the upside, immediate resistance is near the $4,615 level. The next major resistance sits near the $4,650 level. A clear move above $4,650 could open the doors for more upside. In the stated case, the bulls could aim for a move toward $4,720. It coincides with the 1.618 Fib extension level.

If there is a pullback, Gold might find bids near the $4,550 level. The first major support sits at $4,520, below which the price might slide to $4,500.

The main support sits at $4,480. Any more losses might call for a test of the 100 Simple Moving Average (red, 4 hours) at $4,420 or even the 200 Simple Moving Average (green, 4 hours) at $4,320.

Looking at WTI Crude Oil, the price started a recovery wave, but it continues to face heavy resistance near the $60.00 hurdle.

Economic Releases to Watch Today

• US Consumer Price Index for Dec 2025 (MoM) – Forecast +0.3%, versus +0.3% previous.
• US Consumer Price Index for Dec 2025 (YoY) – Forecast +2.7%, versus +2.7% previous.
• US Consumer Price Index Ex Food & Energy for Dec 2025 (YoY) – Forecast +2.7%, versus +2.6% previous.

Gold (XAUUSD) continues to advance to fresh all‑time highs, reinforcing a firmly bullish trend across the broader market. The metal is now progressing toward the completion of wave 5 within the Elliott Wave framework. The rally to $4550.52 marked the termination of wave 3, after which a corrective phase unfolded. Wave 4 developed as a double three structure, reflecting a complex but orderly consolidation. From the peak of wave 3, wave ((w)) concluded at $4301.79, followed by wave ((x)) at $4404.41. The final leg, wave ((y)), ended at $4273.58, thereby completing wave 4 at a higher degree.

Following this correction, gold resumed its upward trajectory in wave 5. The current advance is unfolding as an impulsive sequence in lesser degree. From the base of wave 4, wave (i) finished at $4402.35, while the subsequent dip in wave (ii) reached $4309.42. Momentum carried wave (iii) to $4439.90, before a modest pullback in wave (iv) ended at $4395.92. The final push in wave (v) reached $4500.64, completing wave ((i)) of higher degree. A corrective zigzag in wave ((ii)) then ended at $4407.44.

The metal has since resumed higher in wave ((iii)). From that point, wave (i) concluded at $4483.99, while wave (ii) retraced to $4452.58. Strong buying pressure lifted wave (iii) to $4630.24, confirming renewed bullish momentum. In the near term, as long as the pivot at $4273.58 remains intact, dips are expected to find support. These supports typically emerge in three, seven, or eleven swing sequences, offering traders opportunities to align with the prevailing upside trend.

Gold (XAUUSD) 60 minute chart from 01.13.2026 update

XAUUSD Elliott Wave video:

https://www.youtube.com/watch?v=bwNVe5l0ENs

The Great British Pound has found support of a key confluence area around the 1.3380 handle The move has come as the US Dollar facing a selloff over Fed independence fears

Powell vs Trump 2.0

Over the weekend, Federal Reserve Chair Jerome Powell announced that the Justice Department has served the central bank with legal orders (subpoenas) and is threatening criminal charges.

Powell claims this is part of a larger campaign by the White House to pressure the bank. He explicitly stated that these threats are a punishment because the Fed refused to follow President Trump's demands to lower interest rates, choosing instead to make decisions based on what is best for the public.

While President Trump denies knowing anything about the investigation, he has a long history of attacking Powell for not cutting rates as quickly as he wants.

This move has brought Fed independence fears to the forefront once more. As a result the US Dollar struggled for the majority of the day.

The DXY does however face a crucial support test which may prove a tough nut to crack around the 98.70 handle.

US Dollar Index Daily Chart, January 12, 2026

Source: TradingView

Catalysts Ahead with US Inflation & UK GDP Data

Traders are closely watching the UK's economic growth report on Thursday but before that tomorrow's US inflation report is expected to be higher than most experts predict (rising 0.4%). Investors are feeling calmer about the American job market after the unemployment rate dropped to 4.4% on Friday, even though the underlying details aren't entirely positive.

Finally, the dollar was expected to get a boost from the US Supreme Court, which is likely to rule against President Trump's tariffs sometime between Tuesday and Thursday. If not the Dollar may remain under pressure with the next catalyst likely to be Thursday UK GDP release.

For all market-moving economic releases and events, see the MarketPulse Economic Calendar. (click to enlarge)

Technical Analysis - GBP/USD

From a technical perspective, GBP/USD did bounce off a key confluence area around the 1.3380 zone.

This area plays host to the 100 and 200-day MAs while also being a key area of support and resistance in the past.

The move today was further helped by fundamentals around the US dollar which has experienced a selloff.

The bullish move has also seen GBP/USD bounce off the 50 level on the period-14 RSI. This hints at bullish momentum.

On the upside cable does face some significant hurdles as well with the 1.3500 handle before the recent highs at 1.3568 comes into focus.

GBP/USD Daily Chart, January 12, 2026

Source:TradingView.com

The morning session was nothing short of volatile.

Overnight futures took a hit following news of the DOJ's investigation into Jerome Powell, once again casting a shadow over the Federal Reserve's independence. Yet, this market—and its traders—should never be underestimated.

Stocks caught a bid immediately after the open as participants shrugged off the headlines, using the early drop as yet another buying opportunity.

Despite modest percentage gains on the day, the technical achievements are significant: the Dow is pacing for another record close, the Nasdaq is breaching monthly highs, and the S&P 500 is trading at fresh All-Time Highs.

Individual names are also making history, with Google (Alphabet) recently breaking the $4T market cap milestone as Apple officially announced that they would require Google services for Apple Intelligence.

Google Daily Chart – Source: TradingView

It seems "bad news is good news" in this environment.

As long as the investigation remains a headline rather than an official indictment, investors remain resolutely bullish. Supplemented by heightened geopolitical pressures boosting defense and industrial sectors and driving metals to new highs, the trend remains intact.

However, expect momentum to potentially taper off as the day progresses; traders will likely begin squaring positions ahead of tomorrow's massive Inflation (CPI) release at 8:30 A.M (expected at +0.3% to 2.7% Y/Y)

Let's dive into our daily intra-session charts and NFP trading levels for the major US Indexes: Dow Jones, Nasdaq, and S&P 500.

Current picture for the Stock Market (14:42 P.M. ET) – Source: TradingView – January 12, 2026

Healthcare is hurting once again, seeing quite some outflows in the beginning of this after a huge 2025 trading.

Financials are also struggling in the session as traders await key earnings for JP Morgan and Bank of New York Mellon tomorrow, while Energy drags from Exxon's CEO comments on "uninvestable" Venezuela projects.

The rest of the Market shows green.

Dow Jones 2H Chart

Dow Jones (CFD) 2H Chart – January 12, 2026 – Source: TradingView

Up a strong 1.16% since its open, the Dow is on pace to break new records again, now evolving within a strong intraday upward channel.

A huge bull candle with no wicks is showing bull domination ahead of CPI, powered by its Consumer Defensive and Machinery Sectors – Walmart is dominating the charts up 3.70%.

• A soft report tomorrow could easily send the Dow to 50,000.
• A strong report however would hurt rate cut prospects and could lead to a retest of Major support (Top candidate being 48,600 and 2H 200-MA).

Dow Jones technical levels for trading:

Resistance Levels

• 49,650 to 49,670 Current ATH Resistance
• 46,670 All-Time Highs
• 50,000 Potential Psychological Resistance

Support Levels

• 49,324 2H 50-Period MA
• 49,000 Psychological Pivot
• 48,400 to 48,800 Major Support (2H MA 200 at 48,670)
• Psychological Support at 48,000
• 45,000 psychological level (Main Support on higher timeframe)

Nasdaq 2H Chart

Nasdaq (CFD) 2H Chart – January 12, 2026 – Source: TradingView

After double top threats and a sluggish price action throughout the past months, the Nasdaq is taking the lead again, brought up by the strong AI stock performance today:

AVGO, Oracle, Google, a rebounding Nvidia and many others are pushing the Tech-Heavy index to new highs, also breaking the double-top formed in the past week.

Still, traders will need to be cautious regarding short-timeframe bearish divergences.

Tomorrow's NFP will be key to monitor whether today's move fakes out or materializes into a real break.

• Clearing the CPI, staying above 26,860 would point to a test of the October All-Time Highs.
• Failing to stay above current resistance could lead to a test of the 25,000 Level (25,100 is a key level to watch in this event, things would look bearish below).

Nasdaq technical levels of interest:

Resistance Levels

• intermediate resistance 25,700 to 25,850 (breaking?)
• Session highs 25,877
• All-time high resistance zone 26,100 to 26,300
• Current ATH 26,283 (CFD)

Support Levels

• 25,646 2H MA 50
• Pivot 25,500 +/- 75 pts
• Main Support 25,000 to 25,250
• 24,500 Main support
• Early 2025 ATH at 22,000 to 22,229 Support

S&P 500 2H Chart

S&P 500 (CFD) 2H Chart – January 12, 2026 – Source: TradingView

The S&P 500 went to break its past day record highs yet again, with the new highs set at 6,986.

Similarly to the Nasdaq, traders will need to be cautious regarding a so so optimistic divergence forming as momentum slows during the ascent.

To mitigate the slow rise however, a consistent uptrend sustains overall resilience in the Market – The S&P could hold well a disappointing CPI tomorrow.

Of course, it will depend on how bad it is (if it is).

A bullish CPI could well launch the Spoose beyond 7,000: 7,040 and 7,080 are potential profit-taking levels for the Index.

S&P 500 technical levels of interest:

Resistance Levels

• ATH Resistance 6,945 to 6,975
• Current All-Time High 6,973
• 1.382% Fib-Extension potential resistance at 7,001

Support Levels

• 6,913 4H 50-MA Support
• 6,800 Psychological Pivot and Range lows
• Support 6,720 to 6,750 and 8H MA 50
• 6,400 Major psychological support

Safe Trades and Good Luck for tomorrow's NFP!

EURJPY: ⬆️ Buy

• EURJPY reversed from support area
• Likely to rise to resistance level 184.90

EURJPY currency pair recently reversed from the support area between the key support level 182.70(former resistance from December) and the 61,8% Fibonacci correction of the upward impulse from December.

This support area was strengthened by the support trendline of the daily up channel from October.

Given the overriding daily uptrend, EURJPY currency pair can be expected to rise to the next resistance level 184.90 (the breakout of which can lead to further gains toward 186.00).