USD/JPY finds support near 112.20

Pablo Piovano FXStreet

The greenback managed to regain some traction around the 112.20 area vs. the Japanese counterpart on Thursday, with USD/JPY now rebounding beyond 112.40.

USD/JPY rebounds on USTs

After bottoming out in the 112.20 region, spot met some dip-buyers along with a recovery in yields of the US 10-year benchmark, which gained around 2 bps since daily lows in the 2.32% neighbourhood.

USD opened the session on the defensive as market participants perceived as dovish yesterday’s FOMC minutes, where the Committee now sees drivers for low inflation as potentially non-transitory, while it gave no clues regarding the target for the balance sheet.

In the data space, Japanese tertiary industry activity index contracted 0.2% on a monthly basis. In the US calendar, initial claims and producer prices are next on tap, followed by speeches by FOMC’s permanent voter L.Brainard (mega-dovish) and J.Powell (centrist/dovish).

USD/JPY levels to consider

As of writing the pair is retreating 0.14% at 112.34 facing the immediate support at 112.08 (low Oct.12) seconded by 111.84 (200-day sma) and then 111.77 (61.8% Fibo of 114.51-107.33). On the other hand, a break above 112.63 (10-day sma) would pave the way for a test of 113.44 (high Oct.6) and finally 114.51 (high Jul.11).

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 holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.