USDJPY – Initial signals of recovery losing traction; n/t price action is holding between daily cloud top and Kijun-sen

Slobodan Drvenica Windsor Brokers

USDJPY

Extension of strong bounce from correction low at 112.55 showed initial signs of stall, after daily Kijun-sen capped recovery at 115.60 (50% of 118.59/112.55 pullback) and daily candle with long upper shadow was left on Thursday. However, bullishly aligned near-term technicals favor further upside, as thickening daily Ichimoku cloud (cloud top is currently at 114.10) is continuing to underpin. Consolidation between daily cloud top and Kijun-sen line is expected to precede fresh attempts higher, with break above 115.57 pivot, to trigger fresh recovery towards 116.28 (Fibo 61.8%) and 116.85 (11 Jan lower top) in extension. Conversely, strong bearish signals could be expected on penetration into daily cloud that would trigger fresh weakness towards 113.71 (Fibo 61.8% of 112.55/115.60 recovery leg) and re-expose 112.55 handle on firm break lower.

Res: 115.11; 115.60; 116.28; 116.85

Sup: 114.40; 114.10; 113.71; 113.17

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

1. R3 116.85
2. R2 116.24
3. R1 115.52
PP 114.91
1. S1 114.19
2. S2 113.58
3. S3 112.86

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: Breakdown below trading range support near 1.1770 comes into play

The EUR/USD pair opens with a bearish gap at the start of a new week as the US-Iran war-led global flight to safety boosts the US Dollar. Spot prices, however, lack follow-through selling and manage to hold above mid-1.1700s during the Asian session.

GBP/USD targets 1.3500 barrier near moving averages

GBP/USD rebounds from the daily losses, trading around 1.3450 during the Asian hours on Monday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold retreats from $5,400; still up over 1% amid Middle East tensions

Gold retreats from the $5,400 neighborhood, or its highest level since late January, touched in the Asian session on Monday, though it manages to hold above the $5,300 round figure. The bright metal opened with a bullish gap of about $17 and rallied toward the $5,400 level as Asian traders hit their desks and reacted negatively to the weekend news of the US and Israel attacks on Iran, rushing for cover in Gold.

Top Crypto Losers: Tezos, Toncoin, and Polkadot at crucial levels amid US-Israel strike on Iran

Altcoins such as Tezos, Toncoin, and Polkadot rank among the worst hit cryptocurrencies over the last 24 hours amid the US and Israel's attack on Iran. Tezos and Toncoin are down to crucial support levels while Polkadot remains near a crucial resistance trendline, showcasing underlying strength.

The market is paying for insurance, not apocalypse

As expected, this morning felt less like a Monday market open and more like a fire drill. Futures screens flickered red. S&P contracts down almost 1%. Nasdaq off 1.2%. Brent leaped 13% through $80. Gold rose 1.6% toward $5350 before paring some gains. The dollar is strutting mildly. The Swiss franc is quietly doing what it always does in a storm, catching some safe-haven flows.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.