USD/JPY Forecast: Holding on to gains but lacking momentum

Valeria Bednarik FXStreet

USD/JPY Current Price: 109.16

Japanese yen weakened on the back of the better market mood.
Easing dollar’s demand capped the upside for the pair.
USD/JPY could gather upward momentum on a break above 109.40.

The USD/JPY pair traded as high as 109.38 this Monday, underpinned by the positive momentum of global equities and recovering in government bond yields. The market’s mood improved amid signs of a flattening contagion curve in Europe and New York. The figures, however, are still outrageous and the crisis is far from over. Nevertheless, global equities surged, with US indexes adding over 5.0% each. US Treasury yields also recovered, with the yield on the benchmark 10-year note surging to 0.68% and settling not far below this last.

In the data front, Japan released at the beginning of the day, March Consumer Confidence, which resulted at 30.9 from 38.4 in February. The US won’t release relevant data today. The country will publish this Tuesday earnings and spending figures, and the preliminary estimate of the February Leading Economic Index, foreseen at 90.4 from 90.5 in the previous month.

USD/JPY short-term technical outlook

The USD/JPY pair has briefly surpassed the 23.6% retracement of its latest daily advance, having spent most of the American session just below the level. The short-term picture skews the risk to the upside, as, in the 4-hour chart, the pair is above all of its moving averages, while technical indicators hold within positive levels, although lacking directional strength. The pair would be better poised to extend its advance on a break above 109.40, the immediate resistance.

Support levels: 108.70 108.25 107.90

Resistance levels: 109.40 109.80 110.15

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.