USD/JPY: nearing critical 110.20 support

Valeria Bednarik FXStreet

USD/JPY Current price: 110.51

BOJ to maintain easing but upbeat on inflation.
US Treasury yields retreated on US Government shutdown end, helping the JPY.

The USD/JPY pair plunged to the lower end of its monthly range, in a mixture of market events that backed the JPY. The pair rally up to the 111.20 from late Monday after the US Government shutdown was reverted but pulled back as Treasury yields eased on the news. The 10-year note yield stands at 2.63% ahead of the opening, down from 2.66%. Further helping the Japanese currency was the Bank of Japan's monetary policy meeting outcome. The Central Bank left its monetary policy unchanged but was upbeat on inflation prospects. Nevertheless, Governor Kuroda reiterated that the ongoing easing will continue and that is no time of thinking about trimming QQE, determine to maintain the strong monetary easing, as prices are still weak.

The 4 hours chart shows that the pair continues developing below bearish 100 and 200 SMAs, while technical indicators are now consolidating within bearish territory, with no clear directional strength, anyway leaning the scale toward the downside. The pair has an immediate support at 110.19, the 4-month low set last week, and a stronger one in the 109.80 price zone. A break below this last should open doors for a steeper and continued decline during the following sessions.

Support levels: 110.20 109.85 109.50

Resistance levels: 110.90 111.20 111.60

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.