USD/JPY: Bears back in control post-Japan PMI, targets 109.00?

Dhwani Mehta FXStreet

The USD/JPY pair took a U-turn in Asia and fell further towards 109 handle, as the yen bulls regained control following the release of solid Japan’s manufacturing PMI data, which showed that the gauge hit the highest levels in two-months.

Moreover, the latest leg down in the USD/JPY pair is also on the back of stalled USD rally across the board. The US dollar took a pause in its overnight rally and entered a phase of consolidation against its main peers, as markets remain wary over the US treasury secretary Mnuchin’s comments delivered in the US last session.

However, it remains to be seen if the bears can extend control below 109 levels, as risk-on rally in the Asian equities combined with stable oil prices keep the sentiment around the major somewhat buoyed.

All eyes now remain on the manufacturing and services PMI reports from the US and Fedspeaks, as investors remain on the back ahead of the French Presidential elections due to be held this Sunday.

USD/JPY Technical levels

A break above 109.39/49 (daily high/ Apr 20 high) would expose 110/110.02 (zero figure/ 20-DMA) and 110.17/ 50 (200-DMA/ psychological levels). On the other hand, a breach of support at 109 (round number) could yield a test of 108.86/85 (Classic S1/ Fib S1) and 108.35/29 (Apr 19 & 18 low).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.