USD/JPY Outlook: Fresh safe-haven demand sent yen to five-week high vs dollar

Slobodan Drvenica Windsor Brokers

USDJPY

The Japanese yen was among top gainers in Asian session on Monday, as comments of President Trump over the weekend raised concerns about escalation of US/China trade conflict and prompted investors into safe-haven assets.
Thinner market due to Japan's holiday, also contributed to the action The USDJPY pair opened with big gap lower on Monday and fell through daily cloud, to find footstep at cloud base (110.30).
Extension of Friday's fall (the pair was down around 0.4%) threatens testing psychological 110.00 support and possible extension towards key near-term supports at 109.71/58 (25 Mar trough/weekly cloud base), if fresh bears clearly break below daily cloud.
Meanwhile, consolidation above new five-week low holds within daily cloud (110.30/81) as rising bearish momentum and daily MA's in full bearish setup formed multiple bear-crosses, maintain negative outlook.
Consolidation should ideally remain within daily cloud, but extended upticks need to stay below 111.05 (Friday's low/broken 50% of 109.71/112.40) to keep bears in play.
Conversely, filling today's gap would sideline downside risk and open way for further recovery towards a cluster of daily MA's at 111.30/60 zone.

Res: 110.81; 111.05; 111.30; 111.50
Sup: 110.63; 110.30; 110.00; 109.71

Interested in USDJPY technicals? Check out the key levels

1. R3 112.16
2. R2 111.93
3. R1 111.52
PP 111.29
1. S1 110.87
2. S2 110.65
3. S3 110.23

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.