USD/JPY bulls struggling to defend 108.00 mark

Positive US-China trade developments continue to lend support.
Bulls lacked conviction amid firming Fed rate cut expectations.
Traders eye US retail sales data for some short-term impetus.

Haresh Menghani FXStreet

The USD/JPY pair reversed an early uptick to fresh multi-week tops and is currently placed at the lower end of its daily trading range, around the 108.00 handle.

The pair built on the overnight solid intraday up-move of around 60-pips and a subsequent closer above the 108.00 handle, albeit continued with its struggle to find acceptance/extend the momentum further beyond the 100-day SMA barrier.

It is worth mentioning that the pair on Thursday witnessed a sharp intraday pullback to mid-107.00s in reaction the US President Donald Trump's latest accusation that the Fed is not doing enough to support the US economy.

US-China trade optimism continues to underpin

However, a further improvement in the global risk sentiment, supported by encouraging signs that the United States and China were narrowing their differences over trade, continued attracting some meaningful dip-buying interest.

In the latest trade-related development, the WSJ reported on Thursday that China was seeking to narrow the scope for upcoming trade negotiations in early October, hoping to resolve some key issues and break the deadlock.

Adding to this, a Bloomberg news - citing people familiar with the matter - reported that the Trump administration officials are considering to offer a limited trade agreement to China that would delay and even roll back some US tariffs.

Despite supporting factors, the pair lacked any strong bullish conviction amid firming market expectations that the Fed will ease monetary policy further and cut interest rates at its upcoming meeting next week - September 17-18.

In the meantime, Friday's US economic docket - highlighting the release of monthly retail sales data - will be looked upon for some short-term trading opportunities later during the early North-American session.

Technical levels to watch

USD/JPY

Overview
Today last price	108.02
Today Daily Change	-0.08
Today Daily Change %	-0.07
Today daily open	108.1

Trends
Daily SMA20	106.58
Daily SMA50	107.16
Daily SMA100	108.15
Daily SMA200	109.45

Levels
Previous Daily High	108.19
Previous Daily Low	107.52
Previous Weekly High	107.23
Previous Weekly Low	105.74
Previous Monthly High	109.32
Previous Monthly Low	104.45
Daily Fibonacci 38.2%	107.93
Daily Fibonacci 61.8%	107.78
Daily Pivot Point S1	107.68
Daily Pivot Point S2	107.27
Daily Pivot Point S3	107.01
Daily Pivot Point R1	108.36
Daily Pivot Point R2	108.61
Daily Pivot Point R3	109.03

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial 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 battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

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.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

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.