Northern star, a sign of USD/JPY getting tired?

The US Dollar rose to a peak of 114.69 against the Yen for the first time since November 2017, with the benchmark 10-year Treasury yield touching a fresh 5-month high of 1.68%. Higher long-term US yields increase the allure of the asset to Japanese investors. However, the two-year Treasury yield was up around 0.41% after retreating sharply overnight from Monday’s 19-month high of 0.45%.

The USD index, which measures the greenback against major currencies, including the Yen, was little changed at 93.73 after forming a double bottom at a low of 93.45 this month, gaining 0.17% below the minor resistance of 93.85. The outlook for the US economy is mixed after data showed that US housing construction unexpectedly fell in September and permits fell to a one-year low amid acute shortages of raw materials and labor, supporting expectations that economic growth slowed sharply in the third quarter. However, existing-home sales in September rose +7.0% m/m to an 8-month high of 6.29 million, stronger than expectations of 6.10 million. On the upside, US weekly initial jobless claims unexpectedly fell -6,000 to a 19-month low of 290,000, suggesting a stronger-than-expected labor market for an increase to 297,000.

The Yen strengthened on Thursday amid increasing safe-haven demand, after the JPN225 fell -1.67%. The Yen also found support on Thursday amid a report from Kyodo News that said Tokyo would lift its pandemic restrictions starting this Monday.

USD/JPY, daily

USDJPY is starting to look exhausted at the annual resistance area, below the 115.00 price level with the appearance of a daily doji candle pattern above 114.00. The RSI validates the rally momentum that is starting to fade at overbought levels, while the MACD takes more than one day of trading to validate a bearish signal. Overall, the uptrend has not shown any change, but the signs are already starting to be felt with the presence of 3 northern star candles. The pair is trading down 0.25% slightly below 114.00 at press time. A move to the downside will target 113.18 and a break of this level, the correction will target 112.05. On the upside, the price still has the potential to test the minor resistance at 114.20; 114.40 and recent peaks. Overall prices still look neutral towards the weekend.

GBP/USD holds range near 1.3500 after UK Q2 GDP

GBP/USD keeps its range near the 1.3500 psychological mark in the European session on Thursday. The mixed UK GDP and industrial data failed to inspire the British Pound. Meanwhile, the US Dollar stabilizes after the US CPI data-led sell-off, checking any upside attempts in the pair.

EUR/USD flatlines above 1.1500 as US Dollar stablizes ahead of PPI

EUR/USD is trading modestly flat above 1.1500 in European trading hours on Thursday. The pair stalls its rebound as the US Dollar consolidates losses incurred after the release of July's Consumer Price Index report. Inflation in the US moderated across a broad range of goods and services, cooling expectations for an aggressive Federal Reserve rate hike in September and weighing on the Greenback. The US PPI data is next in focus.

Gold weakens further below $4,400 as USD sticks to gains amid Fed bets, Iran tensions

Gold extends its intraday retracement slide from the highest level since June 5, around the $4,450 area touched earlier this Thursday, and slides further below the $4,400 mark heading into the European session. The initial market reaction to signs of moderating US inflation fades quickly as investors remain worried that higher energy prices will rekindle inflationary pressures.

XRP holds at make-or-break level, ADA and SOL risk 50-day EMA breakout

Top altcoins, including Ripple, Cardano, and Solana, are facing downside pressure, holding at crucial support levels. The technical outlook for XRP, ADA, and SOL indicates a mild bearish bias as downside pressure mounts.

Gold has priced a Fed pause. The hike is still coming

July inflation landed exactly where the consensus had it, on all four lines of the release, and Gold responded by adding around 1% and holding fast near $4,400/ounce, trading at its highest since early June. A print that surprises nobody is not supposed to move a metal that far.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.