USD/JPY flirting with lows, around 113.30 region

Haresh Menghani FXStreet

• Sliding US bond yields offset resurgent USD demand.
• Safe-haven demand adds to the downward pressure.

The USD/JPY pair held weaker through the mid-European session and is currently placed at the lower end of the daily trading range, around 113.35-30 band.

The pair struggled to gain any positive traction despite a goodish pickup in the US Dollar demand. The prevalent cautious environment around global financial markets, accompanied with a sharp slide in the US Treasury bond yields exerted some downward pressure on major.

Adding to this, the latest political developments in the UK provided an additional boost to the Japanese Yen's safe-haven appeal and further collaborated to the pair's weaker tone at the start of a new trading week.

Traders, however, seemed reluctant to place aggressive bets ahead of this week's key US macro data, including the latest inflation figures on Wednesday. In the meantime, key speeches by the BOJ Governor Haruhiko Kuroda and the Fed Chair Janet Yellen would be looked upon for fresh impetus.

Technical outlook

Omkar Godbole, Editor and Analyst at FXStreet writes: "Despite the inverse head and shoulders breakout, a bullish falling channel breakout and a bullish RSI, the spot is struggling to break above the 1-hour 100-MA. The 1-hour 50-MA still descending (favors downside in the spot)."

"A convincing move above 114.00 (resistance of ascending trendline) would push the RSI into bullish territory and shall open doors for re-test of 114.45 (Oct. 27 high). Still, caution is advised as the area above 114.00 has proved to a tough nut to crack" he added.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold tests $$4,400 as softer US bond yields cap USD gains

Gold scales higher for the second straight day and continues to hit new weekly highs through the first half of the European session on Friday, with bulls now awaiting a sustained move beyond the $4,400 mark before positioning for further gains. Retreating US Treasury bond yields keep the US Dollar (USD) uptrend capped ahead of Fedspeak and mid-tier US data.

Bitcoin extends recovery, Ethereum eyes $2,500, XRP holds $1.30

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) extend their recovery, trading above $76,700, $2,400 and $1.300, respectively, on Friday. These top three cryptocurrencies now face key technical levels that could determine whether their recoveries extend further or pull back.

Why Bitcoin's over 30% rebound doesn't mean the bear market cycle is done

BTC has staged a strong recovery after falling to a yearly low of $57,800 in July, gaining nearly 33% and recording two consecutive months of gains in July and August. However, despite that rebound, Bitcoin remains around 40% below its all-time high, leaving one key question for traders: is this the start of a new bullish phase, or simply another recovery within a broader bear-market cycle?

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.