USD/JPY Outlook: directionless action between 109.57 and 110

Slobodan Drvenica Windsor Brokers

USD/JPY

Friday's action was so far shaped in Doji candle and in directionless, following Thursday's close in red after failure to sustain break above important 110 barrier. Coronavirus fears prompted investors into safe-havens that boosted yen and kept larger USDJPY bulls on hold under 110 pivot. Mixed daily studies (strong bullish momentum and MA's in positive setup vs south-heading stochastic and RSI) lack clearer direction signal. This week's action holds above weekly cloud top (109.57) that keeps bullish bias, after Thursday's strong downside rejection (109.61, just above weekly cloud top / rising 10DMA). On the other side, safe-haven demand weighs on the pair but was so far insufficient to produce more pressure and break initial supports that would lead to deeper pullback towards 109.49/43 (converged 20/30DMA's/Fibo 38.2% of 108.31/110.13 ascend). Expect neutral tone while the price holds between 109.57 and 110 levels, with firm break of either side expected to generate initial direction signal.

Res: 109.91; 110.13; 110.29; 110.52
Sup: 109.72; 109.57; 109.43; 109.22

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

1. R3 110.57
2. R2 110.34
3. R1 110.06
PP 109.84
1. S1 109.56
2. S2 109.34
3. S3 109.06

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 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.