USD/JPY outlook: Dollar benefits from safe haven demand

Slobodan Drvenica Windsor Brokers

USD/JPY

The USDJPY pair jumps around 0.7% on Monday morning, as fresh risk aversion fuels demand for safe-haven dollar.

Monday’s acceleration penetrated daily cloud (spanned between 144.74 and 145.54) with cloud top being under increased pressure, after bulls broke through double-Fibo barriers at 145.35/38 (50% of 148.64/142.11/50% of 148.02/142.68).

Break and close above cloud top to generate fresh bullish signal and shift near term bias higher, with targets at 145.96 (100DMA) and 146.15 (Fibo 61.8%) to come in focus.

Meanwhile, bulls may face headwinds at cloud top and take a breather as overbought daily stochastic warns.

Dips should be limited and hold above cloud base (144.74) to keep fresh bulls in play.

Res: 145.54; 145.96; 146.15; 146.30.
Sup: 145.20; 144.97; 144.74; 144.31.

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

1. R3 145.73
2. R2 145.36
3. R1 144.94
PP 144.56
1. S1 144.14
2. S2 143.76
3. S3 143.34

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 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.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

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.