​​Technical Analysis Of The Dow As It Nears Its Record High While EUR/JPY And US Natural Gas Futures Hit Multi-Year Highs.

(MENAFN- DailyFX (IG)) ​​​Macro update ​Asian equities firmer:

​Asian markets edged higher after the Bank of Japan (BoJ) left rates unchanged, with the MSCI Asia ex-Japan index up 0.5% and the Nikkei 225 rising 0.3% as the decision met expectations.

​BoJ tone under scrutiny:

​The central bank lifted four of its six inflation forecasts, maintaining a hawkish bias and reinforcing market pricing for potential rate hikes later in 2026.

​Yen and bonds steady:

​The Japanese yen eased slightly to around ¥158.60 per US dollar, while the BoJ's statement did little to address recent bond market volatility, keeping investors cautious despite stable conditions.

​Wall Street lends support:

United States (​US) equities extended their rebound after President Trump stepped back from tariff threats linked to Greenland, with the S&P 500 up 0.5% and the Nasdaq 100 gaining 0.9%, helping support risk appetite in Asia.

​Dollar soft, metals strong:

​The dollar hovered near its weakest levels of 2026 as Federal Reserve (Fed) futures priced a 96% chance of rates remaining on hold at the next monetary meeting, while gold, silver and platinum climbed to fresh record highs.

​Commodities and crypto mixed:

​Brent crude oil rose 0.9% to $64.61 despite easing geopolitical risks, while Bitcoin added 0.7% to just below $90,000, extending gains alongside broader risk assets.

​Dow Jones nears record high

​The Dow Jones Industrial Average is seen heading back up towards its January record highs at 49,616 - 49,633 and the psychological 50,000 mark.

​Immediate upside pressure should remain in play while Tuesday's low at 48,428 underpins on a daily chart closing basis.

​Short-term outlook:

Bullish, targets the 50,0000 mark while above 48,428.

​Medium-term outlook:

Bullish while above the 2 January low at 47,853, targeting the 50,000 region.

Dow Jones Industrial Average daily candlestick chart Source: TradingView Source: TradingView ​EUR/JPY hits multi-decade high

​EUR/JPY once more hit a multi-decade high, this time at ¥186.87, close to the (synthetic) ¥186.41 December 1981 low. Short-term the cross may stall in this area.

​If not, the (synthetic) January 1983 low at ¥187.57 and the August 1990 high at ¥187.61 may be reached next.

​Minor support can be found at ¥184.92 - ¥184.43.

​Short-term outlook:

Bullish while above ¥182.64, the 8 January low.

​Medium-term outlook:

Bullish while above the 8 January low at ¥182.64.

EUR/JPY daily candlestick chart Source: TradingView Source: TradingView ​Natural gas futures come off 3-year high

​US natural gas futures shot up to 517.7 - a level last traded in December 2022 - due to an intense cold weather outbreak and a sharp shift in market expectations for heating demand. This pushed prices sharply up and triggered a strong short-covering rally among traders.

​We expect a drift back down to ensue, provided that Thursday's peak at 517.7 caps on a daily chart closing basis. If not, the 616.9 November 2022 high may be reached next.

​Minor support is seen around the 419.0 - 410.6 area and, further down, at the 25 November 399.9 low.

​Short-term outlook:

Toppish while below 517.7, targeting the 400 region.

​Medium-term outlook:

Bullish while above the 21 January 355.2 low.

Natural gas daily candlestick chart Source: TradingView Source: TradingView Important to know

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