USD/JPY: bullish, US data and Wall Street key

Valeria Bednarik FXStreet

USD/JPY Current price: 113.29

USD/JPY trades at its highest since July
Rally lead by rising equities and T-yields

After hitting its highest since July at 113.46, the USD/JPY pair entered a consolidative phase near its daily high, holding on to gains as US-Treasury yields advance. The yield for the 10-year note stands at 2.374% after closing Thursday at 2.34%, whilst Wall Street is poised to open higher after setting fresh record highs. There were no macroeconomic releases in Japan, while the US will publish existing home sales data for September after the opening, which may be an interesting barometer for the ongoing dollar's strength, as housing data has tende to disappoint lately. An upside surprise is what the greenback needs today to close the week with a positive tone.

Technically, the 4 hours chart for the pair presents a neutral-to-bullish stance, with the price above its 100 SMA, and the 200 SMA slowly turning higher below the shortest, as technical indicators hold directionless well above their mid-lines. An acceleration through the daily high should lead to an advance up to the 113.90 price zone, whilst beyond this last, a strong static resistance comes at 114.40 where the pair topped in May and July. The pair would need to fall below 112.80 to turn intraday bearish, with scope then to test 112.45.

Support levels: 112.80 112.45 112.00

Resistance levels: 113.10 113.45 113.90

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.