USD/JPY challenges the 108.00 support, session lows

The pair drops and tests the key support at the 108.00 handle.
The downside in spot tracks declining US yields.
US futures are on the defensive amidst risk-off sentiment.

Pablo Piovano FXStreet

The Japanese safe haven is gathering extra steam on Monday and is now dragging USD/JPY to the area of daily lows in the 108.00 neighbourhood.

USD/JPY looks to yields for direction

Spot remains depressed at the beginning of the week, now trading in the lower end of the daily range in the boundaries of the 108.00 handle following a leg lower in US yields.

In fact, yields of the US 10-year note opened with a gap lower although they appear to have found some decent support in the 2.66% area for the time being.

Sentiment in the global markets turned sour early in the day following poor results from the Chinese trade figures, where exports and imports unexpectedly contracted and added to the view that a slowdown in the domestic economy could be in the offing.

In the data space, the next relevant data will be tomorrow’s publication of December’s Producer Prices and the Philly Fed manufacturing index.

USD/JPY levels to consider

As of writing the pair is losing 0.46% at 108.09 facing the next support at 107.7 (low Jan.10) seconded by 107.51 (low Jan.4) and then 105.00 (2019 low Jan.2). On the other hand, a breakout of 108.53 (10-day SMA) would open the door to 109.08 (high Jan.8) seconded by 110.26 (21-day SMA).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.