Will EUR/JPY Bears Stay in Charge for a While More?

JFD Team JFD

EUR/JPY traded higher during the Asian morning Wednesday, but hit resistance near the 122.00 zone, and during the early European morning, it started drifting south again. Although the pair continues to trade above the medium-term upside support line drawn from the low of September 3^rd, for the last week, it’s been printing lower highs and lower lows below a new tentative downside line, taken from the high of January 17^th. Therefore, with ample room until it reaches the medium-term upside line, we would see decent chances for the bears to stay in charge for a while more.

A clear and decisive break below the 121.72 barrier could confirm the case and may initially aim for the 121.45 hurdle, marked by the inside swing high of January 7^th. If that barrier fails to hold and the rate dips lower, we could then see the sellers driving the battle towards the 121.03 zone, which is defined as a support by intraday swing highs formed on January 8^th, or towards the upside line drawn from the low of September 3^rd.

Turning our gaze to the short-term oscillators, we see that the RSI, already below 50, has turned down again, while the MACD lies below both its zero and trigger lines, pointing south as well. These indicators suggest that the rate is picking up downside speed again and support our view for some more near-term declines.

We will abandon our view only if we see a clear break above the 122.32 territory, which held the rate from moving higher on Monday and Tuesday. The rate would already be above the short-term downside line taken from the high of January 17^th, and may encourage the bulls to push for the 122.85, marked near the peak of that day and the day before. If the bulls win the fight near that zone as well, then we could see them sailing for the peak of July 1^st, at around 123.40.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

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.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.