USD/JPY outlook: Bears gained traction and violate strong support zone

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY extends fresh bearish acceleration into second day and fell 1.1% during Asian / European trading on Wednesday.

Increased demand for yen at the end of month as well as end fiscal year was the main driver of the pair, along with dollar bulls pausing for correction.

Fresh weakness broke below pivots at 152.69 (Fibo 23.6% of 139.57/156.74), 151.97 (200DMA) and dented a higher low of larger uptrend at 151.33 (Nov 5), adding to growing negative signals, which will require confirmation on close below these levels.

Daily studies softened as 14-d momentum slid into negative territory and 10/20/30DMA’s turned to bearish setup, contributing to possible scenario of attack at next pivotal supports at 150.15/00 (Fibo 38.2% / psychological.

Alternatively, failure to clearly break 151.33 trigger would ease current strong downside pressure and probably keep the price in prolonged consolidation range, though with bearish bias expected while the action stays below 153.00 zone.

Res: 151.98; 152.69; 153.00; 153.80.
Sup: 151.22; 151.00; 150.18; 150.00.

Interested in USD/JPY technicals? Check out the key levels

1. R3 155.55
2. R2 155.02
3. R1 154.04
PP 153.51
1. S1 152.54
2. S2 152.01
3. S3 151.03

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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.