USD/JPY dragging its feet just south of 113.00

Eearly-market action is twisting on hung risk sentiment despite positive Japan trade readings.
Tuesday remains the more interesting day with the BoJ's latest SoMP on the docket.

Joshua Gibson FXStreet

The USD/JPY is trading into 112.75 in the new week's early action which saw the Dollar-Yen dip into a fresh two-week low before recovering quickly to familiar levels that ended trading last Friday.

Japan's annualized Exports and Imports both improved for October, with the former clocking in at 8.2% (previous -1.3%), with the latter clipping into 19.9% versus the previous period's 7% showing, but the mid-tier bullish trade data showing is only keeping the USD/JPY chained in place as early-market investors await a spark in the chamber in either direction.

Monday is a thin start for the Yen's trading week, with a speech from the Bank of Japan's (BoJ) Governor Kuroda dropping at 03:30 GMT, but traders will largely be keeping an eye out for the BoJ's latest Monetary Policy Statement, due early Tuesday, and investors will be looking for murmurs of increasing divergence within the Japanese central bank's leading ranks, with a slim-yet-growing number of dissenters of the BoJ's hyper-easy policy becoming more vocal in their questioning of the efficacy of Japan's unprecedented easing strategy.

USD/JPY Levels to watch

Losing the 113.00 handle late last week was a strong bearish signal according to FXStreet's own Valeria Bednarik: "the pair closed below the 113.00 level and is technically poised to extend its decline, despite not yet in a bearish market. The daily chart shows that technical indicators turned south, maintaining strong downward vertical slopes, the Momentum still above its mid-line but the RSI already at 46. In the same chart, the 100 DMA maintains a mild bullish slope, currently at 112.00, providing a strong dynamic support that if broken, will anticipate a steeper decline. In the 4 hours chart, the bearish case is stronger, as the pair finished below all of its moving averages, while technical indicators stand at fresh monthly lows, the Momentum extending its decline and the RSI partially losing its downward strength at around 30. The immediate support is 112.60, a strong static level and where the pair bottomed Friday."

Support levels: 112.60 112.25 112.00

Resistance levels: 113.00 113.45 113.80

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited

The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.

Gold regains positive traction after Tuesday's over 2% slump as traders await FOMC Minutes

Gold gains some positive traction during the Asian session on Wednesday and recovers a part of the previous day's heavy losses more than 2%, to the $4,843-4,842 region or a nearly two-week low. The intraday move higher could be attributed to repositioning trade ahead of the release of the FOMC Minutes.

Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs

Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.