USD/JPY: Not enough momentum to break above 145.70 – UOB Group

FXStreet Insights Team FXStreet

There is scope for the USD/JPY pair to advance, but it does not seem to have enough momentum to break the strong resistance at 145.70. In the longer run, downward momentum is slowing; if USD breaches 145.70, it would mean that 141.66 is not coming into view for now, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann notes.

Bulls target resistance at 145.70

24-HOUR VIEW: “Yesterday, we expected USD to trade in a range between 143.80 and 145.20. However, USD rose to 145.55 before pulling back sharply, and quickly, closing at 144.98 (+0.28%). Upward momentum has increased, albeit not much. Today, there is scope for USD to advance, but it does not seem to have enough momentum to break the strong resistance at 145.70. On the downside, support levels are at 144.40 and 144.00.”

1-3 WEEKS VIEW: “In our most recent narrative was from Monday (26 Aug, spot at 143.85), we indicated that USD ‘remains under pressure.’ We also indicated that ‘the increase in momentum from last Friday has increased the chance of it reaching 141.66, the low registered early this month.’ Since then, USD not been able to make further progress on the downside. Downward momentum is slowing, and if USD breaches 145.70 (no change in ‘strong resistance’ level), it would mean that 141.66 is not coming into view for now.”

(This story was corrected on August 30 at 12:15 GMT to say, in the title and in the first paragraph, that the analysts don't think the USD/JPY pair has enough momentum to break above 145.70.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD trims gains, back to around 1.3500

GBP/USD now surrenders part of the earlier move to multi-week peaks around 1.3530 and comes close to the 1.3500 support on Monday. Cable’s uptick comes in tandem with decent gains in the Greenback, always amid persistent uncertainty lingering over the reopening of the Strait of Hormuz and US-Iran talks.

EUR/USD slips to daily lows near 1.1540

EUR/USD now loses further momentum and recedes toward the 1.1540 zone, or daily lows, on Monday. The pair’s bearish performance action comes as investors continue to assess Friday’s disappointing US jobs data in a context where renewed tensions in the Middle East lend decent support to the US Dollar.

Gold clings to daily gains; focus is back to $4,400

Gold picks up pace and advances past the $4,350 mark per troy ounce, adding to Friday’s gains. That said, the yellow metal keeps pushing harder despite the better tone in the US Dollar, and is closely following the Fed’s interest-rate outlook as well as developments in the Middle East

Crypto Today: Bitcoin, Ethereum, XRP eye short-term recovery amid ETF inflows

Cryptocurrency prices are gaining traction on Monday, with Bitcoin (BTC) trading above $65,000, Ethereum (ETH) holding the near-term $1,900 support and Ripple (XRP) hovering above the critical $1.00 demand zone. The broad recovery comes amid capital inflows through US-listed Exchange-Traded Funds (ETFs).

US Payrolls miss – RBA on deck tomorrow

It would be remiss of me not to kick off this morning’s report with a rundown of last Friday’s US jobs report, which was a belter. Headline payrolls fell by 23,000, versus expectations of an 80,000 gain. The BLS noted that May was revised down by 66,000 (from 129,000) and June by 37,000 (from 57,000), resulting in combined May-June revisions of 103,000 lower than previous reports.

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.