USD/JPY makes a fresh attempt to build on momentum beyond 111.00 handle

Haresh Menghani FXStreet

• Strong USD bullish breakout helps offset risk-off mood and regain some traction.
• Mostly in-line US consumer inflation figures remain supportive of the USD bid tone.

The USD/JPY pair has managed to recover early lost ground to over two-week lows and is now looking to build on its momentum back above the 111.00 handle.

A strong US Dollar bullish breakout seen earlier today helped the pair to catch some fresh bids near the 110.60 support. the mostly in-line US consumer inflation figures remained supportive of the strong bid tone surrounding the greenback and further contributed to the pair's intraday recovery of around 40-45 pips.

The uptick seemed rather unaffected by Turkish crisis, which rattled global financial markets on Friday but did little to drive any safe-haven flows towards the Japanese Yen, with the USD price dynamics turning out to be an exclusive driver of the pair's momentum through the early North-American session.

It, however, remains to be seen if the pair is able to build on the recovery move or remains confined in a narrow trading range, held over the past 48-hours or so.

Technical levels to watch

Any subsequent up-move is likely to confront stiff resistance near the 111.55-60 region, above which the pair is likely to aim towards reclaiming the 112.00 handle. On the flip side, 110.60 area remains an immediate strong support to defend, which if broken now seems to open room for a further near-term downside, towards retesting the key 110.00 psychological mark.

Author

Haresh Menghani

FXStreet

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

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.