USD/JPY: a test of 109.00 stays on the table – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group still expect USD/JPY to re-visit the 109.00 handle in the next weeks.

Key Quotes

24-hour view: “Expectation for USD to edge above 109.00 yesterday did not materialize as it slipped after touching 108.94. Upward momentum has waned and the current movement is viewed as part of a consolidation phase. In other words, USD is expected to trade sideways, likely between 108.35 and 108.85”.

Next 1-3 weeks: “There is not much to add to the update from last Friday (26 Jul, spot at 108.65). As highlighted, while USD is “expected to test the solid 109.00 resistance”, it is unclear for now if USD can maintain a toehold above this level. The lackluster price action over the past couple of days offers no fresh clue and USD has to ‘punch’ above 109.00 and register a NY closing above this level in order to indicate that it is ready to tackle 109.60. Meanwhile, 108.10 is still acting as a strong support and only a break of this level would indicate that the current mild upward pressure has waned”.

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.

AUD/USD holds above 0.6900, three-month low as traders await US NFP report

AUD/USD struggles to register any meaningful recovery, trading above 0.6900 during the Asian session on Friday, near its lowest level since early July. The US Dollar sits near a one-and-a-half-year peak as oil-driven inflationary concerns counter reduced bets for an October Fed rate hike and the overnight pullback in US bond yields. Moreover, geopolitical risks support the safe-haven buck and weigh on the Aussie as traders now look to the US NFP report for a fresh impetus.

USD/JPY flatlines near 158.00 after hot Tokyo CPI; US NFP awaited

USD/JPY consolidates near 158.00, the top end of its weekly range during the Asian session on Friday, moving little after hotter-than-expected Tokyo CPI, which backs the case for more BoJ rate hikes. Meanwhile, the US Dollar retains a bullish undertone near a one-and-a-half-year top amid oil-driven inflation fears and geopolitical uncertainties. This, in turn, supports the currency pair, though intervention fears cap the upside as traders keenly await the US NFP report.

Gold remains confined in a range above $4,150; looks to US NFP for fresh impetus

Gold edges lower in a multi-day-old range during the Asian session on Friday as traders await the US NFP report for more cues about the Fed's policy path. The outlook will drive the US Dollar and the non-yielding bullion. Meanwhile, oil-driven inflation fears offset the overnight pullback in US bond yields, helping the USD to stand firm near a one-and-a-half-year high amid the US-Iran standoff. This, in turn, is seen as weighing on XAU/USD.

Near Protocol slides below $5.00 after Near Intents $4M exploit

Near Protocol (NEAR) uptrend has been cut short, as the price slides below $5.00 on Thursday. The correction comes after an exploit on the network’s Near Intents services, which affected deposits and withdrawals across 11 crypto networks. NEAR is currently trading at $4.88, below the daily high of $5.54, while falling momentum indicators suggest that sellers are gaining the upper hand.

Markets are pricing a Fed pause. The jobs data says the hike is still coming

The market has rapidly changed its mind about the Fed. Only a week ago, investors saw an October interest-rate hike as the most likely outcome. However, softer inflation and cautious comments from policymakers have since turned a pause into the dominant scenario.

Markets are pricing a Fed pause. The jobs data says the hike is still coming

The market has rapidly changed its mind about the Federal Reserve (Fed). Only a week ago, investors saw an October interest-rate hike as the most likely outcome. However, softer inflation and cautious comments from policymakers have since turned a pause into the dominant scenario. Yet beneath that dramatic repricing, the US economy is sending a considerably less dovish message.