USD/JPY: Any advance may not reach 157.20 – UOB Group

FXStreet Insights Team FXStreet

Further US Dollar (USD) strength is not ruled out; any advance may not reach 157.20. In the longer run, USD must close above 157.20 before a move to 157.90 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD must close above 157.20 before moving to 157.90

24-HOUR VIEW: "When USD was at 155.85 in the early Asian session yesterday, we were of the view that it 'could edge higher'. However, we noted that 'momentum does not appear to be strong enough to break clearly above 156.20'. We did not expect upward momentum to accelerate so quickly, as USD soared to a high of 156.95. While USD strength is not ruled out, conditions are deeply overbought, and USD may not reach 157.20 today. To keep the momentum going, USD must hold above 156.30, with minor support at 156.55."

1-3 WEEKS VIEW: "In our most recent narrative from last Thursday (04 Dec, spot at 155.20), we highlighted that 'for a sustained decline, USD must first close below 154.65'. While USD dropped below 154.65 a couple of times, it did not close below this level. Yesterday, USD soared above our ‘strong resistance’ level at 156.20 and then closed at 156.86. The tentative downward pressure has faded. There has been a rapid increase in upward momentum, but this time around, USD must close above 157.20 before a move to 157.90 can be expected. The likelihood of USD closing above 157.20 is expected to increase in the next few days as long as the ‘strong support’ level, now at 155.80, is not breached."

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 clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

Gold trades below $4,350; remains close to seven-week high

Gold is seen consolidating Friday's post-NFP rally and trading just below $4,350 at the start of a new week, close to its highest level since June 17. Meanwhile, weak US jobs data tempered Fed rate hike bets, which keeps the US Dollar on the defensive and acts as a tailwind for the non-yielding bullion. Meanwhile, the focus now shifts to this week's US inflation figures as traders await developments surrounding the Middle East crisis.

Week ahead: US CPI data, BoJ summary and RBA decision take the stage

US inflation data to guide Fed rate hike expectations. A hawkish BoJ summary of opinions could support the Yen. RBA could still sound hawkish amid sticky inflation. UK GDP and activity figures to shape sterling sentiment.

Bitcoin Weekly Forecast: Can bulls weather the market uncertainty?

Bitcoin remains resilient, trading above $65,000 on Friday, with bulls defending key support despite cautious market sentiment. US-listed spot Bitcoin Exchange-Traded Funds showed strong inflows through Thursday, pointing to renewed institutional demand.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.