USD/JPY at 14-month lows, pushing lower on US Dollar weakness

USD/JPY continues to decline in a Dollar-bear environment.
US CPI figures weighing down the Greenback.

Joshua Gibson FXStreet

USD/JPY is trading lower but choppy with thinning volumes heading into the European markets, with the pair playing close to 106.40.

The US Dollar dump continued yesterday following a positive beat to US inflation data, with the month-over-month CPI printing an expectation thumping 0.5% increase for January. With strength behind the Japanese Yen continuing to grow, USD/JPY broke through a key barrier to trade at 14-month lows.

USD/JPY Technicals

With the pair closing lower for six of the past eight trading days and the USD selling off steadily, USD/JPY has cleared every major support level and is now poised for freefall unless confidence in the Greenback suddenly returns or the Bank of Japan can successfully talk the markets out of buying the Yen. Daily candles have Fibo retracement levels at 107.90 (38.2) and 108.88 (61.8) if a reversal is priced in around this area, while a continuation of the selloff will see the pair trading into the consolidation established in the third quarter of 2016.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.