USDJPY – recovery rally shows initial signs of stall; overall picture remains negative

Slobodan Drvenica Windsor Brokers

USDJPY

The pair is back to red in early Friday’s trading, after two day recovery rally showed signs of stall after peaking at 109.47 and being unable to close above falling 10SMA (currently at 109.16).

Near-term risk is turning again towards 200SMA (108.88), return below which would weaken near-term structure.

Overall bias remains shifted lower as daily technicals are negative and last week’s long bearish candle weighs heavily on the market.

The pair may hold in extended consolidation before fresh attack at this week’s low at 108.11 and extension of broader downtrend an break below 108.11 and next target at 107.84 (Fibo 61.8% retracement of Jun/Dec 2016 101.17/118.65 rally).

Alternative scenario requires strength through psychological 110.00 barrier at 110.20 (falling 20SMA) to neutralize immediate downside threats and signal stronger correction of 111.56/108.11 downleg.

Res: 109.47; 109.84; 110.00; 110.20
Sup: 108.88; 108.63; 108.30; 108.11

Interested in USDJPY technicals? Check out the key levels

1. R3 110.42
2. R2 109.96
3. R1 109.64
PP 109.18
1. S1 108.86
2. S2 108.40
3. S3 108.08

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 regains balance, targets 1.1800

EUR/USD has lost a bit of momentum after its earlier push higher and is now attempting to reclaim the key 1.1800 barrier on Monday. In the meantime, investors remain focused on the evolving US–EU trade relationship after President Trump’s announcement of sweeping global tariff hikes.

GBP/USD recedes from tops, back to 1.3500

GBP/USD is extending its move higher on Monday, meeting some resistance around 1.3530 on the back of the widespread bearish tone in the US Dollar amid ongoing uncertainty around tariffs. For now, traders are watching overall risk sentiment and central bank rhetoric for the next directional cue.

Gold advances to four-week highs, focus is on $5,200

Gold is holding onto its bullish tone on Monday, hovering near monthly highs well above the $5,100 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.

Crypto Today: Bitcoin, Ethereum, XRP intensify sell-off as tariff uncertainty weighs

Bitcoin, Ethereum and Ripple are trading amid increasing selling pressure at the time of writing on Monday, as investors react to fresh trade uncertainty over US President Donald Trump’s push for more tariffs.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

Top Crypto Losers: Zcash, Pump.fun, and LayerZero extended losses as Bitcoin loses $65,000

The cryptocurrency market starts the week in panic mode, with altcoins Zcash, Pump.fun, and LayerZero. Bitcoin falls below $65,000 as the US President Donald Trump regroups amid renewed trade policy risks.