USDJPY – bounce from 112.50 base expected to fade under daily cloud top

Slobodan Drvenica Windsor Brokers

USD/JPY

The pair bounces from 112.50 support zone (former correction low of 18 Jan) that was retested after yesterday’s fall, but offers solid support for now.
Near-term action remains biased lower and consolidation is expected to precede final break below 112.50 base, for extension of the downleg from 118.65/59 double-top that would look for 111.97 (Fibo 38.2% of 101.17/118.65 rally) initially.
Bearish setup of daily studies supports scenario, with upticks expected to hold below 114.05 /30 zone (falling daily Tenkan-sen / daily cloud top).
Any sustained break here would delay near-term bears for extended correction.
Next strong barrier lies at 114.83 (Fibo 38.2% of 118.59/112.51 downleg) and guards upper breakpoint at 115.60 (19 Jan lower top.

Res: 113.60; 114.05; 114.30; 114.83
Sup: 112.85; 112.50; 111.97; 111.00

Interested in USDJPY technicals? Check out the key levels

1. R3 114.95
2. R2 114.69
3. R1 114.26
PP 114.01
1. S1 113.58
2. S2 113.33
3. S3 112.90

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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

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.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.