EUR/JPY retreats after hitting downtrend line at 142.00 [Video]

Melina Deltas, CFTe XM

EURJPY has been developing within a symmetrical triangle in the long-term timeframe, taken from the troughs in May 2022 and the peak in October 2022. Moreover, in the short-term view, the price is consolidating within a trading range with upper boundary the 23.6% Fibonacci retracement level of the up leg from 124.40 to 148.40 at 142.70 and lower boundary the 138.00 psychological mark, while it found strong resistance at the downtrend line at the moment.

Technically, the RSI indicator is sloping slightly down in the positive territory, while the stochastic is approaching the overbought area, suggesting more gains in the near term.

If the bulls manage to climb beyond the downtrend line and the 50-day simple moving average (SMA) at 142.35 may hit the 23.6% Fibonacci at 142.70. A successful rally above them could change the recent neutral mode to bullish, testing the 147.10 resistance and the eight-year peak of 148.40.

On the other hand, a continuation of the recent retreat could open the door for a touch of the 200-day SMA at 140.80 and the 20-day SMA at 140.45. Below these lines, the 38.2% Fibonacci at 139.20 and the 138.00 round number may halt bearish actions. However, if the bears break that level too, this could take the market towards 137.40 and 136.35, which is the 50.0% Fibonacci, shifting the bias to bearish again.

All in all, EURJPY is looking neutral in the short-term timeframe and traders need to wait for a jump above 142.70 or a drop below 138.00.

Author

Melina Deltas, CFTe

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.