USD/JPY drops below 10-DMA ahead of China data

Omkar Godbole FXStreet Contributor

Broad based USD weakness pushed Dollar-Yen pair below 10-DMA level of 103.74 ahead of the data in China which is expected to show third quarter growth rate remained steady at 6.7% y/y.

Rejected 38.2% Fibo

Dollar bulls made their presence felt yesterday but lacked strength to ensure the pair extended gains above 104.17 (38.2% of Brexit day low and post Brexit high). This is despite the rise in the long duration treasury yields.

Moreover, the steepening of the yield curve since Friday is being read as a sign that markets see Fed moving rates slower than expected.

Furthermore, low US core inflation did not help matters either. The immediate focus is on China data.

USD/JPY Technical Levels

A break above 104.17 (38.2% of Brexit day low and post Brexit high) may not be sufficient as the real test would be whether the pair manages to hold above September high of 104.32. If it does, fresh demand could send the pair higher to 105.44 (23.6% of Brexit daylow – post Brexit high). On the lower side, strong support is seen at 103.14 (50% Fibo + 100-DMA), under which psychological support of 103.00 may not hold long, thus eventually making way for a further slide to 102.11 (50-DMA).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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.