USD/JPY: Major support at 145.80 is unlikely to come into view – UOB Group

FXStreet Insights Team FXStreet

US Dollar (USD) could break below 146.60 against Japanese Yen (JPY); the major support at 145.80 is unlikely to come into view. In the longer run, sharp drop in USD has scope to extend, but any decline may not break below 145.80, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Sharp drop in USD has scope to extend

24-HOUR VIEW: "After the sharp selloff in USD last Friday, we indicated yesterday that 'although further USD weakness seems likely, conditions are deeply oversold, and it remains to be seen whether USD can reach the 146.60.' We pointed out that 'resistance levels are at 147.65 and 148.50.' USD subsequently rose to 148.08 before dropping to a low of 146.85 in the late NY session. While conditions remain oversold, the buildup in downward momentum could lead to USD breaking below 146.60 today. The major support level at 145.80 is unlikely to come into view (there is another support level at 146.30). Today’s resistance levels are at 147.30 and 147.60."

1-3 WEEKS VIEW: "We highlighted yesterday (04 Aug, spot at 147.25) that the sharp drop in USD from last Friday 'has scope to extend.' However, we pointed out that 'any decline may not break below 145.80.' We will maintain the same view as long as long 149.00 (‘strong resistance’ level was at 149.50 yesterday) is not breached."

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 meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

Ethereum Price Forecast: BitMine extends ETH buying streak, says long-term outlook remains positive

Ethereum (ETH) treasury firm BitMine Immersion continued its weekly purchase of the top altcoin last week after acquiring 45,759 ETH.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.