GBP/JPY spikes on Japan stimulus news

Omkar Godbole FXStreet Contributor

Yen is being heavily offered across the board on news Japan is likely to announce a JPY 27 trillion stimulus later today. GBP/JPY cross jumped to hourly 200-MA of 139.64 levels.

Two-figure rise

The cross is up full two figures from its opening rate of 137.31 levels. Right from the start of the trading in Asia, the Yen has been on the back foot. Initially what appeared to be a technical correction quickly turned into a Yen selling frenzy after reports hits the wires that PM Abe is due to announce a JPY 27 trillion stimulus today.

In the meantime, Cable traded muted in early Asia and continued to do so at the time of writing. Consequently, the cross jumped full two figures.

GBP/JPY Technical Levels

Acceptance above hourly 200-MA level of 139.64 could yield a break above 140.0, in which case the bullish move could be extended to 142.08 (23.6% of 163.895-128.602). On the other hand, break below 139.07 (hourly 100-MA) would expose 138.22 (hourly 50-MA)- 138.00 level.

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 meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.