USD/JPY outlook: Resumes rally after a brief pause

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY resumes uptrend on Monday, after a brief pause last Thu/Fri and hit new multi-decade high, just ticks ahead of 154.00 round-figure barrier.

Bulls hold grip despite increased pressure from overbought studies, with last week’s close above former pivotal barriers at 152.00 zone, adding to bullish signals.

Initial resistances lay at 154.00/25, guarding targets at 155.00/29 (psychological / Fibo 200% projection of the rally from 146.48, Mar 8 low).

Near-term bias to remain firmly with bulls while the price action stays above rising 10DMA (152.32) while loss of strong supports at 152.00 zone (former tops / 20DMA) would increase risk of deeper pullback.

Although fears of intervention have eased, markets remain cautious, as Japan’s authorities are ready to intervene to support weakening yen.

Res: 154.00; 154.25; 155.00; 155.29.
Sup: 152.94; 152.32; 152.00; 150.80.

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

1. R3 154.36
2. R2 153.87
3. R1 153.56
PP 153.08
1. S1 152.77
2. S2 152.28
3. S3 151.97

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 off highs, back to around 1.1900

EUR/USD keeps its strong bid bias in place despite recedeing to the 1.1900 zone following earlier peaks north of 1.1900 the figure on Monday. The US Dollar remains under pressure, as traders stay on the sidelines ahead of Wednesday’s key January jobs report, leaving the pair room to extend its upward trend for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.