USD/JPY analysis: underpinned by better market mood

Valeria Bednarik FXStreet

USD/JPY Current price: 110.49

US Treasury yields stabilized, equities surged, backing some USD/JPY gains.
US soft macroeconomic data limited the pair's advance.

Stable US Treasury yields and the better performance of worldwide equities underpinned the USD/JPY pair which rose to 110.68 this Tuesday. Equities closed in the green although there were no impressive rallies. US government bond yields bounced as appetite for riskier assets improved, with the benchmark yield for the 10-year note settling at around 2.41%. Safe-haven yen recovered some ground in the final hours of trading, as US indexes retreated from daily highs. Japan released at the beginning of the day the February Corporate Service Price which came in at 1.1% YoY, matching the previous month reading. The BOJ released its Summary of Opinions, which didn't surprise. This Wednesday, the Japanese calendar will remain empty.

The pair is settling at around the 38.2% retracement of its latest daily slump after touching the 50% retracement of the same slide at 110.70, with a mildly positive stance in the short-term. In the 4 hours chart, the pair continues developing below the 100 and 200 SMA, suggesting that longer-term advances are still in doubt, but broke above its 20 SMA, now flat around 110.25. Technical indicators recovered ground, the Momentum maintaining its bullish slope and the RSI now flat at around 50, failing to confirm additional gains ahead, to be more clear if the pair surpasses the mentioned 110.70.

Support levels: 110.15 109.70 109.30

Resistance levels: 110.70 111.10 111.50

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.