USD/JPY consolidates in a range, around mid-106.00s

Haresh Menghani FXStreet

• Fading Fed rate hike expectations/US political news keeps USD on the back-foot.
• Fears of a global trade war revive on Trump’s plan to impose tariffs on China.

The USD/JPY pair stalled overnight sharp retracement slide from near two-week tops and was now seen consolidating in a range, around mid-106.00s.

Renewed US Dollar selling pressure remained unabated through the Asian session on Wednesday and was being further weighed down by the US President Donald Trump's plans to impose tariffs on China.

Against the backdrop of fading expectations over a steep Fed monetary policy tightening cycle, coupled with news of Rex Tillerson's ouster as the US Secretary of State, reviving global trade war fears continued exerting downward pressure on the greenback and failed to lend any support to the major.

Despite the negative factors, the pair has managed to hold within previous session's broader trading range as investors now look forward to a fresh batch of US economic data - monthly retail sales and the latest PPI figures, for some fresh impetus.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes, “yesterday's retreat from 107.29 to 106.30 has put pressure back on the bulls. A negative follow-through (preferably a close below 106.25) would signal the rally from 105.25 (March 2 low) has ended at 107.29 (yesterday's high) and could yield a re-test of 105.25 - 105.00.”

“The pullback from 107.29 to 106.30 is discouraging, however, the descending trendline support (former resistance breached on March 9) is still intact. Further, the bullish crossover between the 5-day moving average (MA) and the 10-day MA indicates a short-term bullish setup. Meanwhile, on the 4-hour chart, 50-MA and 100-MA have shed bearish bias (bottomed out)”, he adds further.

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 stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.