USD/JPY Bearish 3 Drive Pattern for Counter Trend Opportunity

Nenad Kerkez Top-XE

The USD/JPY has made a clear break above 114.00 level when Fed’s Yellen announced that the rate hike will likely be appropriate at one of its upcoming meetings if employment and inflation evolve in line with expectations. The USD/JPY didn’t move much during Asia session and 3 drive pattern has been established at resistance. 0 to A and A to B are higher than 61.8 while 1 to 2 and 2 to 3 are higher than 1.272 and we might expect to see a possible counter trend opportunity. POC1 is clear but the point 3 will only be confirmed at the break of ATR pivot confluence 114.40 else it might reach POC2. POC2 is 114.80-115.00 and if the pair get there watch for reversal signal there. In the case of rejection targets are 114.10 followed by 113.60.

Author

Nenad Kerkez

Top-XE

GBP/USD defends 1.3300 after strong upbeat UK PMI data

Following Thursday's sharp decline, GBP/USD clings to small gains above 1.3300 in the European session Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair's upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US economic calendar will feature preliminary July PMI data later in the day.

EUR/USD holds gains near 1.1400 after strong German, EU PMIs

EUR/USD is holding gains near 1.1400 in European trading on Friday. The Euro draws support from an unexpected increase in the German and Eurozone business PMI readings for July. However, further upside appears limited by escalating conflicts in the Middle East, despite the ECB's hawkish hold decision. The US PMI data are next in focus.

Gold climbs above $4,050 on retreating USD; upside seems limited amid Fed hike bets

Gold builds on its modest intraday bounce and climbs back above the $4,050 level, hitting a fresh daily high during the first half of the European session amid a modest US Dollar pullback. The fundamental backdrop, however, warrants some caution before confirming that the pullback from an over two-week high, touched on Wednesday, has run its course and positioning for any meaningful upside.

Ethereum: Derivatives interest in ETH improves, but signs of caution remain

Ethereum is hovering slightly below the $1,900 level, down 3% on Thursday following a slight expansion in derivatives interest. The top altcoin's open interest has increased to 14.60 million ETH, marking a 600K ETH increase over the past two days and its highest level since June 7.

Crypto Market Overview: Bitcoin tests 50-day EMA support – Pi Network and Sky lead losses

The broader cryptocurrency market faces headwinds with rising tensions between the US and Iran, pushing Bitcoin down to its 50-day Exponential Moving Average support around $65,135 on Friday. Under pressure, Pi Network and Sky emerge as the worst-performing crypto assets over the last 24 hours.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.