USD/JPY analysis: Trades below 113.00

Dukascopy Bank Team Dukascopy Bank SA

USD/JPY

On Monday, the decline of the USD/JPY currency pair reached below the support of the 113.00 mark, which was strengthened by the weekly S1 simple pivot point. On Tuesday, the rate retraced back up and confirmed the 113.00 level as resistance. Namely, the pair moved back up and bounced off the 113.00 mark.

If the rate continues to decline, the next target for the decline could be the weekly S2 simple pivot point at 112.58. Below the pivot point, the 112.50 mark might provide support, before the USD/JPY reaches the September high-level zone at 112.05/112.10.

However, a recovery of the pair above the 113.00 mark might find resistance in the 50-hour simple moving average at 113.30. Above the 50-hour SMA, the 100-hour SMA at 113.60 could serve as resistance. In addition, the 200-hour SMA and the weekly simple pivot point at 113.72 are likely set to also provide downwards pressure.

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 deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.