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The above chart shows daily price action. The USDJPY is in a mark-up phase which is typically defined by a bullish EMA formation. The green 5-day EMA > the orange 13-day EMA > the black 34-day EMA. The RSI(9) is above 50 and indicative of bullish momentum. However, we note that the current reading of the RSI(9) is above 80, which is overbought (blue rectangle). A pullback to normalise the oscillators will be viewed as normal and may provide a “buy the dip in an uptrend” opportunity.
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EUR/USD rebounds to 1.0650 on renewed USD weakness
EUR/USD gained traction and rose to the 1.0650 area in the early American session on Tuesday. Disappointing housing data from the US seem to be weighing on the US Dollar, helping the pair stretch higher.
GBP/USD climbs above 1.2450 after US data
GBP/USD extended its recovery from the multi-month low it touched near 1.2400 and turned positive on the day above 1.2450. The modest selling pressure surrounding the US Dollar after dismal housing data supports the pair's rebound.
Gold retreats to $2,370 as US yields push higher
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world supported by a strong US labour market.