EUR/JPY - Pattern is increasingly looking like a top - Commerzbank

Omkar Godbole FXStreet Contributor

Karen Jones, Head of FICC Technical Analysis at Commerzbank, takes note of the aggressive drop in the EUR/GBP cross and the resulting topping pattern on the charts.

Key quotes

This is the third time that the market has failed at 134.58 and this is viewed very negatively. Ideally, we would like to see a close below the base of the cloud at 130.98 to confirm losses to 128.50 and the 127.57 August low.

Where are we wrong near term? Above 134.58 November 2015 high. Above here would target the 2008-2017 resistance line at 140.72/141.00. The market is now bid above the 131.39 recent low and the base of the cloud at 130.98.

View

Short-Term Trend (1-3 weeks): Increasingly looks like a potential top.

Long-term trend (1-3 months): Neutral.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD treads water around 1.1900

EUR/USD edges a tad lower around the 1.1900 area, coming under mild pressure despite the US Dollar keeps the offered stance on turnaround Tuesday. On the US data front, December Retail Sales fell short of expectations, while the ADP four week average printed at 6.5K.

GBP/USD looks weak near 1.3670

GBP/USD trades on the back foot around the 1.3670 region on Tuesday. Cable’s modest retracement also comes in tandem with the decent decline in the Greenback. Moving forward, the US NFP and CPI data in combination with key UK releases should kee the quid under scrutiny in the next few days.

Gold flirts with daily lows near $5,000

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

AI Crypto Update: BankrCoin, Pippin surge as sector market cap steadies above $12B

The Artificial Intelligence (AI) segment is largely on the back foot with major coins such as Bittensor (TAO) and Internet Computer (ICP) extending losses amid a sticky risk-off sentiment.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.