Gold

​Gold had a nice action, acted well according to our plan of Friday's morning note: "Some buying interest resumes in Gold . It found some support at $1281.50ish, broke up intermediate resistance and we can see $1290 soon. A break bigger downtrend line could set it back in motion and attract more active buyers.

Gold

Now we have close above short term moving averages and down trend line. I am a buyer above $1304.5, next support at $1300. My target zone that may be reached this week is $1322 (200 Moving Average) and $1330 (previous swing high from where it bounced). I expect many Call opportunities today, will be waiting my favorite setups, those I mentioned on the 15m chart.

Gold15m

USD/JPY

USD/JPY gapped down on Monday after very squeezy Friday on US job report. If sellers want to keep control they don't want to give up $102.97-102.174 area (gap zone). That breakdown of intermediate support looks powerful and we can see price testing bigger support at $101.350.

USDJPY

US Markets

Let's also review US markets after US job report. It closed in red on Friday despite good data. That is why you should listen to what the market tells you not just trading opinions of Bloomberg analysts. So, it failed above previous high and closed near lows – something to take notice, maybe it could lead to something bigger. Point to make adjustments is low of the day at $187.78, below that I expect to see some downside follow through to $186.80 – just some kind of tactic move, I am not screaming about reversal. Bigger support at $184.

SPY

Overall, it is building a nice upper-level base in front of resistance and could break up sometimes, not ready yet. In general, 2014 is very choppy for US markets as it is a range with lack of following through both sides after big 2013 gains. The theme of the year is trading some individual names (stocks). A lot of actions across the board.