USD/JPY Analysis: In limbo around 114.00, awaits NFP data

Dukascopy Bank Team Dukascopy Bank SA

“The OPEC agreement could reinforce yen weakness triggering a full reversal by lifting USD/JPY back towards the 120.00-level.”

- Bank of Tokyo-Mitsubishi (based on FXStreet)

Pair’s Outlook

As was anticipated, the USD/JPY currency pair underwent a small corrective decline, but remained in a tight range between the immediate support and resistance levels. The Buck is now expected to rally, receiving momentum from the US NFP data later today. The main target is the 116.00 mark, but a surge further could be difficult to achieve, as the psychological resistance is also reinforced by the weekly R2 and the Bollinger band. Moreover, some data could weigh on the US Dollar, limiting the possible gains. Meanwhile, technical indicators also suggest that bulls are likely to prevail, as they keep giving positive signs.
Traders’ sentiment

Bears grew stronger again, as 62% of all open positions are short today (previously 61%). At the same time, there are slightly less orders to sell the Greenback, namely 55% (down from 60% on Thursday).

Interested in USDJPY technicals? Check out the key levels

1. R3 115.65
2. R2 115.24
3. R1 114.64
PP 114.24
1. S1 113.63
2. S2 113.23
3. S3 112.62

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

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 holds gains near $5,000 as China's gold buying drives demand

Gold price clings to the latest uptick near $5,000 in Asian trading on Monday. The precious metal holds its recovery amid a weaker US Dollar and rising demand from the Chinese central bank. The delayed release of the US employment report for January will be in the spotlight later this week.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

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.