USD/JPY moves higher to 114.20, session tops

Spot climbs higher on US yields rally
DXY drops to session lows near 93.85
US data on sight

Pablo Piovano FXStreet

The Japanese currency remains entrenched into the negative ground on Wednesday and is now helping USD/JPY to advance to fresh 3-month tops in the 114.30 area.

USD/JPY in multi-week tops

The buying pressure around the pair stays on the rise today following the up move in yields of the US 10-year reference to fresh tops around the critical 2.45% neighbourhood, or 7-month peaks.

However, the US Dollar Index (DXY) continues to ignore the bull run in yields and is currently testing daily lows in the 93.90/85 band, down smalls for the day.

In the meantime, investors remain anxious waiting for President Trump’s decision on the successor of Chief Janet Yellen. It is worth mentioning that (pro-USD?) candidate J.Taylor still appears as the front runner over J.Powell and K.Warsh.

In the US data space, September’s new home sales and durable goods orders are next on tap ahead of the EIA’s weekly report on crude oil inventories. In Japan, critical inflation figures are due on Friday.

USD/JPY levels to consider

As of writing the pair is gaining 0.21% at 114.15 and a break above 114.25 (high Oct.25) would open the door to 114.39 (high May 11) and finally 114.51 (high Jul.11). On the other hand, the immediate support is located at 113.25 (low Oct.24) seconded by 112.90 (10-day sma) and then 111.75 (200-day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.