USD/JPY: Yen refuses to give up

Valeria Bednarik FXStreet

USD/JPY Current price: 113.99

The USD/JPY pulled back once again from the 114.30 region tested overnight, struggling now around 114.00, despite strong US data. The Japanese yen seems to be playing a different game, stronger as equities and yields trade in the red. Nevertheless, the downward potential is limited, with the market now lifting bets on a Fed rate hike next June after US PPI rose more than expected in April, while unemployment claims fell to their lowest in 28 years in the week ending May 6th. From a technical point of view, the pair seems to be developing a double top, with the neckline of the figure being the immediate support at 113.60, while the upward potential fades, given that in the 4 hours chart, technical indicators have extended their decline within negative territory. In the same chart, 100 and 200 SMAs maintain their bullish slopes far below the current level, suggesting that in the longer run, the possibility of a steeper decline is well-limited. To the upside, the pair needs to break a strong Fibonacci resistance around 114.50, to shrug off the negative tone and be able to resume its bullish trend.

Support levels: 113.60 113.20 112.80

Resistance levels: 114.10 114.50 114.90

View Live Chart for the USD/JPY

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 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.