Further rangebound expected in USD/JPY – UOB

Pablo Piovano FXStreet

USD/JPY should remain within the current consolidative trading, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Instead of “edging above the strong 108.40 level”, USD traded sideways between 107.92 and 108.27 before ending the day little changed at 108.17. The underlying tone still appears to be slightly positive and we continue to see chance for USD to test 108.40. That said, a move beyond the next resistance at 108.60 is not expected. On the downside, a break of 107.90 would indicate that the current mild upward pressure has eased”.

Next 1-3 weeks: “Despite the relative strong advance in USD, we continue to hold the same view as highlighted earlier yesterday (23 Jul, spot at 107.90) wherein USD is trading sideways within a 107.40/108.40 range. While the underlying tone has improved, only a NY closing above 108.60 would indicate that USD is ready to challenge the early July peak near 109.00. The prospect for such a scenario is not high for now but it would continue to improve as long as 107.70 is intact”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.