USD/JPY: bulls will struggle for traction even if a breakout above 109.70 is seen [Video]

Richard Perry Independent Analyst

USD/JPY

We retain our positive medium term outlook on Dollar/Yen but are concerned that another near term corrective slip could be underway. This move would still be seen as a chance to buy, but also reflect the uphill battle that the bulls face to achieve any real gains. There is an uptrend since September that comes in at 108.70 today, whilst we also see the 109.00 breakout as an area of support. This is therefore a buy-zone between 108.70/109.00. The 55 day moving average is also a basis of support around 108.80. What makes Dollar/Yen so difficult to call is that there is a number of contradictory near term candles (moving into Christmas week this is hardly likely to get any better). The resistance at 109.70 remains intact and momentum indicators have lost positive traction but equally are not in retreat. The run of higher highs tells us that the bulls will struggle for traction even if a breakout above 109.70 is seen. Further resistance at 109.90 and the May high of 110.65 is key.

Author

Richard Perry

Independent Analyst

EUR/USD remains weak near 1.1800

EUR/USD remains on the back foot on Thursday, trading close to the 1.1800 support ahead of the opening bell in Asia. The pair’s pullback comes amid further gains in the Greenback, while investors keep assessing the ECB’s decision to leave its policy rates unchanged

GBP/USD falls to new lows near 1.3530

GBP/USD extends Wednesday’s pullback on Thursday, easing lower towards two week lows around the 1.3530 area. Ongoing strength in the Greenback and the dovish hold from the BoE at its earlier meeting are keeping demand for the British Pound on the defensive for now.

Gold fails to sustain gains above $5,000 for third consecutive day

Gold is back under pressure on Thursday, slipping back towards the $4,800 region per troy ounce. A firmer US Dollar is weighing on the yellow metal, even as the broader mood remains risk off. That said, falling US Treasury yields across the curve are helping to cushion the downside and, for now at least, are limiting the depth of the pullback.

Strategy's Bitcoin treasury in focus as MSTR crashes alongside crypto market

Strategy (MSTR), the largest corporate holder of Bitcoin (BTC), is in focus ahead of its earnings call on Thursday amid an intensifying crypto market sell-off. Also caught in the headwinds is the MSTR stock, trading at $114 at the time of writing, down over 12% intraday.

The AI mirror just turned on tech and nobody likes the reflection

Tech just got hit with a different kind of selloff. Not the usual rates tantrum, not a recession whisper, not even an earnings miss in the classic sense. This was the market staring into an AI mirror and recoiling at its reflection.

Breaking: Bitcoin slips below $70,000 as falling knife scenario in play

Bitcoin (BTC) price dips below $70,000 on Thursday, having corrected nearly 20% for this year. Market momentum turned extremely bearish, with technical indicators pointing to further downside toward the next key support at $65,000.