USD/JPY eyes next hurdle at 108.50 – UOB

Pablo Piovano FXStreet

USD/JPY could advance further and is expected to test the mid-108.00s in the near term, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday “108.20 appears to be within reach but prospect for a sustained USD advance above this level is not that high”. We added, “107.50 is likely strong enough to hold any intraday pull-back”. USD subsequently dropped to 107.50 before soaring to 108.18 during late NY hours. The rapid advance over the past few days is showing sign of ‘tiring’ and while USD could advance from here, any up-move is viewed as a higher trading range of 107.80/108.30. The next resistance at 108.50 is unlikely to come into the picture for today”.

Next 1-3 weeks: “The 107.90 level that was highlighted last Friday (06 Sep, spot at 107.00) was exceeded at the time of writing. While our expectation for a rebound to 107.90 was correct, the pace of advance has been more rapid than anticipated. The price action has resulted in a sharp pick-up in momentum and the USD strength could carry it higher to the next pit-stop is at 108.50. On the downside, only a break of 107.20 (strong support previously at 106.30) would indicate that the current upward pressure has eased. Shorter-term, 107.50 is already a strong support level”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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.