Asset Allocation Before Christmas: Continued Gold Rally, Cryptocurrency Rebound, and Stock & Forex Rise Present Technical Opportunities

Market Background: Risk Appetite Rebounds, Multi-Asset Rally

As the Bank of Japan’s rate hike expectations ease pressure on carry trades, coupled with Micron Technology’s strong earnings report, market risk appetite has quickly improved. The VIX and volatility indicators both decline, traditional safe-haven assets and growth assets strengthen simultaneously, forming a rare multi-asset resonance pattern.

Ethereum: Bottom Construction Completed, Rebound Space Opens

Ethereum recently successfully reclaimed the $3,000 psychological level, a significant psychological breakthrough. Over the past month, ETH has repeatedly found support in the $2780-$2800 range, indicating that the short-term bottom structure has basically formed, and market bullishness has clearly increased. According to the latest data, Ethereum (ETH) is currently priced at $3.14K, with a 24-hour increase of +1.18%.

Technical Layout:

• Support levels: $3000, $2800, $2600
• Resistance levels: $3200, $3400, $3600
• If it stabilizes above $3000, it is expected to challenge the highs of $3400 to $3600 sequentially
• If it falls below $2780, caution is needed as the downtrend since August may continue

Gold: Breakthrough Highs, Upward Momentum Sufficient

Gold performed outstandingly before Christmas, with a single-day surge of over $80, breaking above the $4420 year-high, fully confirming the new rally launched on November 5. Supported by low interest rates and geopolitical risks, gold’s attractiveness continues to rise.

Technical Layout:

• Support levels: $4400, $4300, $4220
• Resistance levels: $4500, $4620, $4770
• If gold maintains above $4400, there is a high probability of further rebound challenges toward $4500 and even $4620
• The overall upward trend is expected to continue into late January

S&P 500: Bull-Bear Boundary Confirmed, Clear Rebound Target

The S&P 500 index rose 0.88% last Friday, reaching a high of 6840 points. The key point is that the index has stabilized above the bull-bear dividing line at 6790 points. Holding this technical level indicates strong bullish expectations, with institutional buying still motivated to follow through.

Technical Layout:

• Support levels: 6800, 6600, 6450
• Resistance levels: 6900, 7000, 7320
• If it remains above 6790, further rebound toward 6900 to 7000 is likely
• Losing this level could trigger a decline back to 6600

USD/JPY: Stabilized at High Levels, Upward Trend Maintained

USD/JPY is consolidating around 157.40. Although it recently touched a low of 157.23, it remains well above the 157.0 support, maintaining an overall upward trend. Expectations of a BOJ rate hike have provided momentum for further rebound.

Technical Layout:

• Support levels: 157.0, 155.0, 152.0
• Resistance levels: 159.0, 160.0, 162.0
• If it stays above 157.0, the upward trend may continue to challenge 159.0 and even 162.0
• A break below 157.0 would raise the risk of falling back to support at 155.0