USD/JPY: intraday rallies should be seen as a chance to sell [Video]

Richard Perry Independent Analyst

USD/JPY

A rather mixed look to the payrolls report on Friday has done little to change the outlook on USD/JPY. A run of negative candlesticks in recent sessions may have stalled slightly, but a breakdown below 106.95 is confirming with another closing breach of support. This completes a top that implies a further -150 pips of downside towards the 105.50 area now. Given the significant deterioration across momentum indicators, intraday rallies should be seen as a chance to sell. The RSI holding under 50, along with the MACD lines accelerating lower and negative configuration on Stochastics reflect this. A close under 106.75 (the neckline of the old base pattern) would begin to add traction to the deterioration. Subsequent support comes in at 105.70. The hourly chart shows resistance in the band 106.95/107.30 as an intraday sell zone. There is further resistance 107.40/107.90.

Author

Richard Perry

Independent Analyst

EUR/USD stays depressed near 1.1850 ahead of German ZEW

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined ahead of the German ZEW sentiment survey.

GBP/USD drops below 1.3600 after weak UK jobs report

GBP/USD is seeing a fresh selling wave, giving up the 1.3600 level in Tuesday's European trading. The United Kingdom employment data showed worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative is weighing heavily on the Pound Sterling.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Pi Network rallies ahead of its first anniversary

Pi Network trades above $0.1800 at the time of writing on Tuesday, recording nearly 5% gains so far. On-chain data indicate that large wallet investors, commonly known as whales, have accumulated approximately 4 million PI tokens over the last 24 hours.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.