USD/JPY analysis: holding near key 113.40 resistance

Valeria Bednarik FXStreet

USD/JPY Current price: 113.24

Bulls made a pause but still dominate USD/JPY.
BOJ's Kuroda said that Japan is no longer in a stage in where overcoming deflation is the appropriated conduct.

The USD/JPY pair stands where it left last Friday, around the 113.20 ahead of Tuesday's opening, as the market's attention was somewhere else, more specifically, in Europe, leaving the pair confined to a 25 pips' range daily basis. The BOJ released the Minutes of its latest monetary policy meeting at the beginning of the day, but as usual, the document didn't surprise. Governor Kuroda later spoke and gave the first hint of a possible change in the monetary policy in the foreseeable future, saying that Japan is no longer in a stage in where overcoming deflation is the appropriated conduct. Nevertheless, he reiterated that policymakers are not preparing any immediate tightening, and repeated that rates will remain low for "an extended period of time." Japan will release September Overall Household Spending, seen up 1.6% YoY vs. the previous 2.8%.

The 4 hours chart suggest that bulls have made a pause but didn't give up just yet, as the pair remains close, but below the 113.40 region, a strong static resistance, also above its 100 and 200 SMA, although with the shortest below the larger one, which limits the upward potential. Technical indicators in the mentioned chart ease within positive levels, rather reflecting buyers' on pause than suggesting increased selling interest. The bullish potential will suffer only with a break below 112.60.

Support levels: 113.00 112.60 112.30

Resistance levels: 113.40 113.85 114.10

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD flat lines around 1.1900; looks to US NFP report for fresh directional impetus

The EUR/USD pair is seen oscillating in a narrow trading band around the 1.1900 mark during the Asian session on Wednesday as traders opt to wait for the release of US monthly employment details before placing fresh directional bets.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold awaits US Nonfarm Payrolls data for a sustained upside

Gold remains capped below $5,100 early Wednesday, gathering pace for the US labor data. The US Dollar licks its wounds amid persistent Japanese Yen strength and potential downside risks to the US jobs report. Gold holds above $5,000 amid bullish daily RSI, with eyes on 61.8% Fibo resistance at $5,141.

Ethereum: Whales buy the dip amid rising short bets

Following one of Ethereum's largest weekly drawdowns, whales are slowly returning to action alongside a drop in retail selling pressure. After slightly selling into the decline at the start of the month, whales or wallets with a balance of 10K-100K ETH began buying the dip last Wednesday as prices crashed further.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.