USD/JPY analysis: neutral, but risk remains towards the upside

Valeria Bednarik FXStreet

USD/JPY Current price: 114.02

The USD/JPY pair was unable to attract speculative interest this Tuesday, trading within a 60 pips range all through the day, with the upside contained by selling interest around 114.18. The pair was unable to react to US data, and trades not far from the multi-month high set last week around 114.90. Somehow, the limited upward potential in the JPY indicates that the latest slide of the greenback against its European rivals, is a due correction after the post-Trump victory rally. As for the technical outlook the short term picture is neutral, as in the 1 hour chart, the price is converging with a still bullish 100 SMA, and a major Fibonacci level, both around 114.00, while technical indicators have no directional strength, flat barely above their mid-lines. In the 4 hours chart, technical indicators are also stuck around their mid-lines, although the 100 and 200 SMAs keep heading higher below the current level, with the shortest offering a strong support around 111.90. The risk remains towards the upside as long as the price holds above this last, although a break above the mentioned 114.90 region is required to confirm a new leg higher, up to the 116.60 price zone.

Support levels: 113.60 113.15 112.80

Resistance levels: 114.45 114.90 115.30

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 hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

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 sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve 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.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

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.