USD/JPY consolidates strong gains to two-month peaks

Haresh Menghani FXStreet

The USD/JPY pair held on to its gains beyond the 114.00 handle, albeit has retreated few pips from fresh two-month tops touched in the past hour.

A modest pull-back in the US Treasury bond yields seems to be only factor failing to provide any fresh bullish impetus for the US Dollar and assist the pair in building on to its strong gains beyond May monthly highs resistance near 114.35-40 region.

• USD/JPY scope for a test of 114.35 – UOB

However, the prevalent risk-on environment, as depicted by strong gains in global equity markets, was seen weighing on the Japanese Yen's safe-haven appeal. This accompanied with today's dovish comments by the BoJ Governor Haruhiko Kuroda and prospects of additional Fed rate hike action this year remained supportive of the strong bid tone surrounding the major.

In absence of any major market moving economic releases from the US, broader market risk sentiment and the US bond yield dynamics would remain key determinants of the pair's movement at the start of a new trading week.

Technical levels to watch

A strong follow through buying interest beyond the 114.35-40 immediate resistance has the potential to continue boosting the pair further towards the key 115.00 psychological mark en-route its next major hurdle near 115.30-35 region.

On the downside, retracement back below the 114.00 handle, leading to a subsequent drop below the 113.70 level, could drag the pair back towards a short-term ascending trend-line resistance breakpoint, now turned support near 113.25-20 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD hovers around 1.3450 amid upbeat mood, ahead of ADP

GBP/USD is inching higher above 1.3450 in European trading on Wednesday, helped by reduced haven appeal for the US Dollar as markets cheer a potential US-Iran deal on the Strait of Hormuz reopening. The decision is due later in the day. Traders also look forward to the US ADP and ISM Services PMI data.

EUR/USD keeps range near 1.1550 on Hormuz reopening optimism

EUR/USD holds ground near 1.1550 in the early European hours on Wednesday. The pair stays supported amid hopes for a US-Iran deal on the reopening of the Strait of Hormuz, which lifts risk sentiment and keeps the safe-haven US Dollar on the back foot. The US ADP Employment data and ISM Services PMI report are in the spotlight alongside Mideast headlines.

USD/INR: Indian Rupee eases from monthly highs after RBI's neutral hold

Indian Rupee is easing from its highest level in a month above the 95.00 level against the US Dollar on Wednesday, holding gains after the Reserve Bank of India (RBI) held the Repo Rate at 5.25%, as expected, maintaining a neutral stance amid still-modest inflation.

Top 3 Price Predictions: Bitcoin, Ethereum, Ripple – BTC eyes breakout, ETH consolidates, XRP finds stability

Bitcoin, Ethereum and Ripple move toward the key technical levels on Wednesday, which could determine the next directional bias. BTC is near the 50-day Exponential Moving Average, ETH trades sideways while XRP is showing signs of stabilization.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.