Payrolls Friday! USDJPY doji, third time’s a charm?

John Benjamin Orbex

Its payrolls Friday and the markets are expecting to see a solid print for November following Wednesday's ADP payrolls increase. Yesterday, the ISM and Markit's manufacturing PMI showed a strong increase in the reading. The markets are fully discounting the December rate hike. However, in the near term, the focus will be on Europe over the weekend with Italy and Austria in focus which could weigh on investor sentiment.

EURUSD Intra-day Analysis

EURUSD (1.0682): EURUSD was bullish yesterday, closing at 1.0661 with prices now seen trading close to the resistance at 1.0700. Price action could remain in a ranging position between 1.0700 - 1.0650 in the near term with an imminent breakout above 1.0700 likely to set the stage for an eventual move in EURUSD towards the main resistance level of 1.0900. Besides the nonfarm payrolls event, today, the weekend referendum in Italy and the Austrian elections are two major event risks that could pose headwinds for the single currency.

USDJPY Intra-day Analysis

USDJPY (114.03): USDJPY's doji is the third since the rally first started in early November. With the doji pattern indicating indecision near the 114.00 resistance level, a pullback is likely. But doubts remain on the scope of the pullback. Major support sits at 108.00, and it is possible that the dollar could slip to this level by next week in the backdrop of the geo-political events from Europe. On the 4-hour chart, prices are moving within an ascending wedge/triangle pattern which indicates a potential breakdown in prices. Watch for 113.50 minor support which if gives way could potentially clear the room for a drop towards the initial support at 109.75 - 109.50.

XAUUSD Intra-day Analysis

XAUUSD (1174.54): Gold prices formed another doji yesterday slipping to lows of 1160.83 in yesterday's trading. However, this could now signal a correction towards the support at 1200.00. In the near term, look for a pullback to 1170.00 following which gold prices could be seen rising towards the resistance zone of 1207.50 - 1200.00. Further upside could be seen if gold prices break out above this resistance in which case, 1250.00 could become a possibility. Alternately, the downside risks also increase if price breaks down below the previous low (1160.83) which could see gold eventualy slip towards the 1250.00 support.

Author

John Benjamin

Orbex

John is a market analyst for Orbex Ltd. and is a forex and equities trader having been involved in trading since late 2009. John makes use of a mix of technical and fundamental analysis and inter-market relationships.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.