USDJPY corrects higher before final push towards 112.00/111.60 targets

Slobodan Drvenica Windsor Brokers

USDJPY

The pair bounces from fresh three-week low at 112.25 posted yesterday, with daily close below 112.57 (Fibo 76.4% of 111.67/115.49 rally), generating bearish signal and exposing round-figure support at 112.00, ahead of key short-term support at 111.57/67 zone (07/28 Feb lows that formed higher base.

Current move higher could be seen as correction that should be ideally capped under 113.00 (top of hourly Ichimoku cloud).

Extended upticks are expected to stay under strong 113.50 resistance zone (daily cloud base/Kijun-sen / 20/30 SMA’s), before bears resume.

Only firm break here would sideline bears and signal stronger correction.

Res: 112.88; 113.00; 113.34; 113.50
Sup: 112.57; 112.25; 112.00; 111.67

Interested in USDJPY technicals? Check out the key levels

1. R3 113.03
2. R2 112.91
3. R1 112.80
PP 112.69
1. S1 112.58
2. S2 112.46
3. S3 112.35

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 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.