USD/JPY: choppy open in consolidation awaiting Trump's inauguration speech

Ross J Burland FXStreet

Currently, USD/JPY is trading at 114.97, up 0.15% on the day, having posted a daily high at 115.12 and low at 114.78.

USD/JPY is consolidating the 2017 reversal from the 112.50 while markets are awaiting Trump's inauguration and speech. Meanwhile, the dollar has been in recovery overnight and US yields have found some support on stronger US data along with the Philly Fed's business survey that affirmed the broad strength in yesterday's Fed's Beige Book.

Interest rates:

Analysts at Westpac noted that the US data added to the already rising profile for US yield: 10yr rose +5bps to 2.47%. Thus, the Central bank theme that has come back into play remains so and is benefiting the dollar going forward as we await Trump to bump up the US economy and ultimately drive capital into the US given, and as Harry Dent mentioned in the below panel, the US economy is the best house in a bad neighbourhood."

USD/JPY levels

Current price is 114.97, with resistance ahead at 115.12 (Daily High), 115.30 (Weekly Classic PP), 115.34 (Daily 20 SMA), 115.58 (Daily Classic R2) and 115.63 (Yesterday's High). Next support to the downside can be found at 114.94 (Daily Classic R1), 114.84 (Hourly 20 EMA), 114.80 (Daily Open), 114.80 (Weekly High) and 114.78 (Daily Low).

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 114.61

42% Bullish
50% Bearish
8% Sideways

Bias Bearish

1 Month

Avg Forecast 115.48

40% Bullish
40% Bearish
20% Sideways

Bias Neutral

1 Quarter

Avg Forecast 117.26

55% Bullish
15% Bearish
30% Sideways

Bias Bullish

What is the Trump trade?

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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.