USD/JPY Forecast: Bullish amid dollar’s demand

Valeria Bednarik FXStreet

USD/JPY Current Price: 111.33

US Treasury yields fell further amid Fed’s massive and unlimited QE.
Japan’s March preliminary Jibun Bank Manufacturing PMI foreseen at 47.6.
USD/JPY heading towards February high at 112.22 and higher.

The USD/JPY pair is once again ending the day with gains, not far from a fresh monthly high of 111.59. The Japanese currency appreciated at the beginning of the day as expected, as market players reacted to risk-averse weekend news. However, speculative interest returned to the greenback, moreover after the US Federal Reserve announced unlimited QE to counter the ongoing crisis. The pair surged, despite US equities remained in the red and US Treasury yields edged lower.

Japan will release the March preliminary Jibun Bank Manufacturing PMI foreseen at 47.6 from 47.8 previously. It may be a barometer of what PMI for other economies may result later in the day. Japan will also release the January Leading Economic Index and the Coincident Index for the same month, although given that those are all news, the market will likely ignore them.

USD/JPY short-term technical outlook

The USD/JPY pair is defying its recent highs amid the dollar’s strength, bullish short-term. The 4-hour chart shows that a bullish 20 SMA continues to provide intraday support, as it heads north below the larger ones. Technical indicators, in the meantime, however within positive levels, lacking clear directional strength. The pair has room to re-test February’s high at 112.22, and even advance beyond it as long as pullbacks are contained by buyers in the 109 handle.

Support levels: 111.05 110.70 110.20

Resistance levels: 111.90 112.25 112.60

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: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

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.