USD/JPY drops 150 pips in two days, is the rally over?

USD/JPY continued to slide on the back of Trumps’ comments.
US dollar retreated sharply from 6-month highs and bottomed below 111.50.

Matías Salord FXStreet

The USD/JPY pair was rejected again on Thursday from above 113.00 and dropped sharply. The move to the downside accelerated following Donald Trump comments about interest rate hikes from the Federal Reserve.

Late on Friday, Trump continued to speak against Fed rate hikes and USD/JPY extended the decline despite higher US yields. The pair bottomed at 111.38, the lowest levels since July 11. Near the end of the week was consolidating losses hovering around 111.50/65, down 160 pips from the weekly high.

Technical outlook

The reversal removed the positive short-term bias for the greenback and presents doubts about the rally that started mid-March. An uptrend line around 110.80 could be a key level: a consolidation below that level could signal that USD/JPY has peaked at 113.17.

If the US dollar rebounds, it needs to rise back above 112.00 to recover momentum while a solid break on top of 112.80/90 is needed to open the doors to more gains.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.