USD/JPY - 105.38.. Although dlr traded narrowly in subdued Asian morning on Mon, the pair caught a bid at European open n penetrated Fri's 105.18 to 105 .41 on active cross-selling in yen. Price later moved narrowly in N. America.

On the bigger picture, dlr's fall fm 118.66 (Dec 2016) to 2019 low at 104.46 (Sep) confirms early uptrend fm 2016 29-month bottom at 99.00 has hit a top there. Despite hitting a 3-1/2 year bottom of 101.19 in Mar due to risk-off trades on COVID-19 pandemic, dlr's brief but strg rise to 111.71 signals temp. low is in place. Having said that, although the pair ratcheted lower to 102.60 at the start of Jan 2021, subsequent bounce to 104.39, then rally abv there in the last week of Jan to as high as 105.76 suggests gain twd 107.16 (50% r of 111.71-102.60) may be seen, 'bearish divergences' on daily indicators would cap price below 109.84. Only below 104.39/42 signals top is made, risks 103.33.

Today, dlr's rise fm last week's 104.42 low (Wed) to 105.41 yesterday suggests correction fm Feb's 16-week peak at 105.76 has ended, abv extends rise fm Jan's 102.60 trough to 106.10, 'bearish divergences 'on hourly indicators should cap price below 106.55. Only a daily close below 104.84 risks re-test of 104.42.

Author

AceTrader Team

AceTrader

Led by world-renowned technical analyst Wilson Leung, we have a team of 7 analysts monitoring the market and updating our recommendations and commentaries 24 hours a day.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.