USD/JPY analysis: Near weekly highs, but losing upward strength

Valeria Bednarik FXStreet

USD/JPY Current price: 113.89

Nikkei Manufacturing PMI down to 52.2 in October weighed on JPY.
Daily recovery stalled below 114.00, limited by the lack of progress in US-yields.

The USD/JPY pair settled at 113.89, trimming most of it Monday losses as the pair fell to 113.23 early Asia, following the soft tone of US equities. The pair recovered ground on the back of rising US Treasury yields, as the 10-year benchmark hit 2.41% ahead of Wall Street's opening, but there was no follow-through after the bell, nor in yields, neither in the USD/JPY pair. The Nikkei Flash Japan Manufacturing Purchasing Managers' Index, or PMI, released this Tuesday, fell to 52.5 from September's 52.9, a sign that the sector lost momentum at the beginning of Q4. The pair is still unable to surpass the high set at the beginning of the week as a result of the Japanese election at 114.09, and from a technical point of view, the bullish potential lost momentum, as in the 4 hours chart, the price remains above its moving averages, but technical indicators failed to surpass previous highs, currently easing within positive territory. Given that there are no news scheduled in Japan, the pair will likely keep following the lead of equities, with US Durable Goods Orders being a probable directional catalyst for this Wednesday.

Support levels: 113.45 113.10 112.70

Resistance levels: 114.10 114.40 114.85

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 weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

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.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.