USD/JPY falls to the lowest in over one year after violation of key supports

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY fell to the lowest levels since July 2023 in early Monday trading as fresh acceleration lower broke pivotal supports at 140.77 (weekly cloud base) and 140.48/25 (Fibo 61.8% of 127.22/161.95 rally / Dec 28 low) and moved below psychological 140 support.

The dollar remains under pressure on firm expectations for Fed rate cut this week, with widely expected decision for 25 basis points cut however, more aggressive action for 50 basis points cut is still on the table and adds pressure on dollar.

On the other hand, signals that come from Japanese policymakers for further rate hikes (although the BoJ is expected to stay on hold in the policy meeting on Friday) fuel the story of widening gap between monetary policies of two central banks and provide fresh boost to Japanese yen.

Technical studies are firmly bearish on daily and weekly chart, suggesting that the pair may continue to travel south.

Daily close below 140 handle is needed to confirm signal and expose targets at 137.23 (July 2023 low) and 135.41 (Fibo 76.4%) in extension.

Meanwhile, oversold conditions on daily chart may provide fresh headwinds to larger bears, with consolidation / limited correction to mark positioning for fresh push lower.

Broken weekly cloud base reverted to solid resistance (141.15), followed by falling daily Tenkan-sen (142.56) which should ideally cap upticks.

Res: 140.00; 140.48; 141.15; 141.76.
Sup: 139.00; 138.06; 137.23; 135.41.

Interested in USD/JPY technicals? Check out the key levels

1. R3 143.3
2. R2 142.59
3. R1 141.71
PP 141
1. S1 140.11
2. S2 139.4
3. S3 138.52

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD flat lines near 1.1800 as traders brace for US PPI release

The EUR/USD pair trades on a flat note near 1.1800 during the early Asian session on Friday. The pair steadies as softer Eurozone inflation offsets US tariff uncertainties. Traders await the preliminary reading of the Consumer Price Index from Germany on Friday for more clues about the pace of future policy easing. On the US front, the Producer Price Index report will be released.

GBP/USD declines below 1.3500 on UK political uncertainty, US PPI data eyed

The GBP/USD pair loses ground to near 1.3485 during the early Asian session on Friday. The Pound Sterling weakens against the Greenback amid rising UK political uncertainty surrounding the Gorton and Denton by-election.

Gold awaits acceptance above $5,200 and US PPI data

Gold consolidates previous rebound near $5,200 amid risk-off markets, awaiting US PPI release. The US Dollar eyes a flattish weekly close as dovish Fed outlook and tariff woes outweigh geopolitical risks. Gold yearns for acceptance above $5,200 to resume the uptrend, with a bullish RSI in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.