USD/JPY meets fresh supply, back below 113.50

DXY extends post-NFP sell-off
The Yen underpinned by strong manufacturing index.
Focus shifts to the US CPI, Fed outcome.

Dhwani Mehta FXStreet

The US dollar extends its Asian retreat against its Japanese counterpart into early Europe, now on the offers back below the midpoint of 113 handle.

USD/JPY off 3-week tops

The spot is seen closely moving in sync with the US dollar index, as subdued Treasury yields across curve continue to undermine the sentiment around the buck. Mixed US labor market report released on Friday weighs down on the US rates, while markets also resort to profit-taking on their USD longs after the recent upsurge heading towards the FOMC decision due later on Thursday.

More so, stronger Japanese BSI manufacturing index released earlier in Asia also lends support to the renewed uptick seen in the Yen, pushing USD/JPY further southwards. Japan big manufacturers' mood improves in October-December: Govt survey

Looking ahead, the pair will take cues from the sentiment on the European open ahead of the US JOLTS jobs opening data, as investors brace for the US inflation report and Fed outcome due later in the week ahead.

USD/JPY Technical View

Jim Langlands at FX Charts, noted: “With the momentum indicators aligning higher, a test of 113.80 would not surprise, beyond which 114.00/05 will see sellers ahead of a possible towards 114.30 and even 114.75. Look to buy dips towards 113.00/10 with a SL placed sub 112.80.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold drifts lower as positive risk tone tempers safe-haven demand; downside seems limited

Gold drifts lower during the Asian session on Tuesday and snaps a two-day winning streak, though it lacks strong follow-through selling and shows some resilience below the $5,000 psychological mark amid mixed cues. The outcome of Japan's snap election on Sunday removes political uncertainty, which, along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Follow the money, what USD/JPY in Tokyo is really telling you

Over the past two Tokyo sessions, this has not been a rate story. Not even close. Interest rate differentials have been spectators, not drivers. What has moved USD/JPY in local hours has been flow and flow alone.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.