USD/JPY: Eording the 110.50/85 resistance is critical to alleviate negative bias – Commerzbank

FXStreet Insights Team FXStreet

USD/JPY is again approaching the 110.60/85 resistances. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, had been expecting a top here but now is considering a continuation pattern.

Watch out the 110.50/85 band

“USD/JPY is again approaching the 110.60/85 resistances. We had been viewing this as a potential top, BUT it could be a continuation pattern, so we will wait and see what happens in the 110.50/85 band.”

“We will maintain a negative bias for now while below 110.85 and we look for a retest of the 109.07 and 108.73 recent lows.”

“A drop through 108.56 (end of May low) would engage the 107.48 April low. The 55-week ma lies at 107.14 and we would allow for some consolidation there.”

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.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.