USD/JPY: 2-way trades – OCBC

FXStreet Insights Team FXStreet

USD/JPY jumped in early trade this morning, as demand for safe haven proxy faded in reaction to news that US government shutdown may be nearing an end. USD/JPY last seen at 154.17 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Price pattern revealed a series of lower lows

"Opposing forces of fiscal concerns, intervention risks and risk sentiments should continue to drive the pair. We observed that MOF officials appear to be more vocal each time USD/JPY goes above 154."

"Last week, Finance Minister Katayama did say she was 'watching FX moves with high sense of urgency', and that somewhat restraint USD/JPY from breaching higher. We continue to monitor if verbal intervention steps up intensity under the new Finance Minister or eventually progress towards actual intervention."

"Daily momentum shows tentative signs of turning mild bearish while RSI fell. Price pattern revealed a series of lower lows while highs appear flatlined – typically a descending triangle – which could signal fresh bearish pressure. Technical signs point to some downward pressure. Support at 152.50 (21 DMA), 151.60 (61.8% fibo). Resistance at 154.40 (76.4% fibo retracement of 2025 high to low)."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD breaches below 1.3500, two-day lows

GBP/USD faces renewed selling pressure, eroding the earlier advance and slipping back to the sub-1.3500 region on Wednesday. Cable’s loss of upside momentum follows the resurgence of the demand for the Greenback amid steady geopolitical tensions. Looking ahead, the British Pound is expected to remain under scrutiny in light of the release of UK GDP data on Thursday.

EUR/USD weakens to multi-day lows near 1.1520

EUR/USD makes a U-turn and trades with decent losses near 1.1520 following the closing bell on Wall Street on Wednesday. The US Dollar’s recovery post-US CPI data keeps the risk complex under pressure in a context where geopolitics takes centre stage once again. Moving forward, attention remains on US inflation with the release of Producer Prices alongside weekly Claims.

Gold has priced a Fed pause. The hike is still coming

July inflation landed exactly where the consensus had it, on all four lines of the release, and Gold responded by adding around 1% and holding fast near $4,400/ounce, trading at its highest since early June. A print that surprises nobody is not supposed to move a metal that far.

Ethereum Price Forecast: Fidelity plans to add staking to ETH ETF amid yield debate

Asset manager Fidelity has filed with the US Securities and Exchange Commission (SEC) to permit staking in its Ethereum (ETH) exchange-traded fund (ETF), the Fidelity Ethereum Fund (FETH), which holds over $898 million in net assets.

911 million shares freed: Why SpaceX rallied into its own supply

The most heavily trailed supply event of the year landed on August 6, and the SpaceX (SPCX) stock went up. Roughly 911.5 million shares held by insiders and early backers became eligible to trade, around 43% more than the entire float sold at the listing.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.