USD/JPY breaks above key trendline, hits two-week high on the EU migration deal

The USD/JPY hit a two-week on Friday as EU migration deal put a bid under risk assets.
The currency pair breached keep falling trendline (drawn from May 21 low and June 15 low).

Omkar Godbole FXStreet Contributor

The risk assets are on the rise and the safe havens and the funding currencies like the Japanese Yen are being offered across the board on the news that European leaders have reached an agreement on migration.

The USD/JPY pair jumped to 110.79 - the highest level since June 15 and was last seen trading at 110.75. Also, the currency pair has crossed 110.68 - resistance of the trendline sloping downwards from the May 21 low and June 15 low.

So, the narrowing price range has ended with an upside break? Not really, as a breakout would be confirmed only if the pair closes today above 110.68.

However, with risk assets reporting gains, the probability of a strong close above 110.68 is quite high. At press time, the S&P 500 futures are up 0.30 percent.

USD/JPY Technical Levels

Resistance: 110.90 (June 15 low), 111.40 (May 21 high), 111.62 (50% Fib R of December 2016 high - March 2018 low)

Support: 110.18 (200-day MA), 109.80 (bullish 50-day moving average), 109.37 (June 25 low).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.