USD/JPY: poised to extend gains, 112.00 key

Valeria Bednarik FXStreet

USD/JPY Current price: 111.34

View Live Chart for the USD/JPY

Hopes that US president Trump will unveil its tax reform have fueled risk-on, resulting in the USD/JPY topping at 111.50 this Wednesday, its highest in two weeks. Trading not far below, the American dollar got a boost against its Japanese rival as US treasury yields keep recovering ground, latest at 2.33% for the 10-year benchmark, against previous 2.27%. With little news ahead, the pair will likely trade according to US assets during the upcoming session, although market players may remain cautious ahead of BOJ's monetary policy meeting early Thursday. From a technical point of view, the pair maintains its bullish stance, given that in the 4 hours chart, technical indicators have resumed modestly their advances after correcting extreme overbought readings, whilst buyers surged on a test of the 200 SMA that anyway presents a bearish slope. This last, around 111.10 is the immediate support, followed by 110.60, the probable bearish target in the case of dollar's weakness. Above the mentioned daily high on the other hand, the pair has scope to extend its advance up to 112.00, the 38.2% retracement of the November/December rally, and the level to surpass to confirm a more constructive outlook in the mid-term.

Support levels: 111.10 110.60 110.30

Resistance levels: 111.50 112.00 112.45

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind 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 treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

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.