USD/JPY jumps to 112.00 neighborhood ahead of US data and Yellen speech

Haresh Menghani FXStreet

After an initial dip to mid-111.00s, the USD/JPY pair regained traction and might now be eyeing to move beyond the 112.00 handle ahead of the US data.

With investors looking past fresh geopolitical tensions between the US and N. Korea, persistent US Dollar buying interest helped the pair to stall its corrective slide from last week's two-month highs and snap two consecutive days of losing streak.

Meanwhile, a modest uptick in the US Treasury bond yields, amid fading safe-haven demand, underpinned the greenback demand and remained supportive of the pair's up-move back closer to 50-day SMA hurdle.

Next on tap would be the US economic docket, featuring the release of CB Consumer Confidence Index and New Home Sales data, which would be looked upon to grab some short-term trading opportunities.

The key focus, however, would remain on the Fed Chair Janet Yellen's speech, later during the NY trading session, where hints over a possible December rate hike move should provide an additional boost to the buck and help the pair to resume with its prior appreciating move.

• USD/JPY heading higher towards 114 - Natixis

Technical levels to watch

A follow through bullish momentum beyond the 112.00-112.10 barrier could get extended towards mid-112.00s, above which the pair is likely to aim towards reclaiming the 113.00 handle.

On the flip side, weakness back below 111.70-65 area might continue to find support near mid-111.00s, which if broken could accelerate the slide towards the 111.00 handle.

Author

Haresh Menghani

FXStreet

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

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP rally loses steam despite steady ETF inflows

Bitcoin is back below $80,000 at the time of writing on Friday, after a second attempt at breaking resistance between $81,000 and $82,000. Meanwhile, Ethereum and Ripple mirror Bitcoin’s cooling trend, with ETH sliding to $2,500 and XRP falling toward $1.40 support.

Week ahead – RBNZ and BoC decide on rates ahead of all-important US NFP

Dollar rebounds ahead of ISM PMI and NFP data. RBNZ is expected to raise rates; focus to fall on forward guidance. BoC is set to remain on hold; will it raise rates in 2027?

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.