USD/JPY analysis: pressuring highs ahead of NFP report

Valeria Bednarik FXStreet

USD/JPY Current price: 112.77

Japanese GDP revision and trade balance data ahead.
USD/JPY expected to range ahead of US employment figures.

The USD/JPY pair is up on the day, trimming its weekly losses and nearing 113.00, despite US Treasury yields remained flat for the day. The Nikkei soared overnight up over 320 points, the main reason beyond latest yen's weakness, as European and American equities, followed the positive lead. Japan's leading index decreased for the second straight month in October according to preliminary readings, dropping to 106.1 from 106.5 in September. The coincident index that reflects the current economic activity rose to 116.5 in October from 116.2 in the preceding month, beating market's expectations. Japan will release Q3 GDP figures, expected with a modest upward revision from preliminary figures, alongside with October Trade balance data. The pair holds near its daily highs with a modest upward potential according to technical readings in the 4 hours chart, as the price continued recovering above its 100 SMA, but holds below the critical 200 SMA now offering a dynamic resistance around 112.90. Technical indicators in the mentioned chart have entered positive territory, but have a limited directional strength. Little should be expected for the upcoming hours, as the USD/JPY pair tends to hold within a tight range ahead of US employment data.

Support levels: 112.45 112.00 111.60

Resistance levels: 112.90 113.30 113.65

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.