USD/JPY Forecast: Rising odds for a visit to 101.00 (and below)

USD/JPY comes under renewed selling pressure and breaches 102.00.
Safe haven demand keeps the pair and yields depressed.
Coronavirus concerns, oil crisis remain in centre stage on Monday.

Pablo Piovano FXStreet

USD/JPY has come under extra downside pressure at the beginning of the week and it has breached the 102.00 mark, area last visited in November 2016.

Increasing and unremitting fears over the fast-spreading coronavirus continue to weigh on global sentiment and bolster further the demand for the safe haven universe on Monday. In addition, the downside pressure on US yields have dragged yields of the 10-year reference to fresh historic lows once again, also collaborating the downside in the pair.

In the meantime, the negative view on the pair looks unchanged, at least in the short-term scenario, as speculations on the likeliness of another interest rate cut by the Federal Reserve at the March 17-18 meeting remain on the rise and keep the selling mood on the buck well and sound.

Short-term technical outlook

Against the current backdrop of unabated risk aversion, there is limited (if any at all) chances of a recovery in USD/JPY, leaving occasional bullish attempts (mainly on the back of the extremely “oversold” condition in the pair) as selling opportunities. Looking further south, a breach of Monday’s lows in the mid-101.00s should expose the next support of relevance at 101.19 (monthly low November 2016) ahead of the psychological 100.00 barrier.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.