USD/JPY: Moving towards 154.50 – UOB Group

FXStreet Insights Team FXStreet

Room for the US Dollar (USD) to decline further. The next level to watch is 154.50, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

USD is set to reach 154.50

24-HOUR VIEW: “We indicated yesterday that USD ‘could retest the 156.25 level before a more sustained recovery is likely.’ However, USD broke below 156.25, reaching a low of 155.55. While the sharp drop is oversold, there is room for USD to decline further, even though it remains to be seen if it can maintain a foothold below 155.35. The next major support at 154.50 is unlikely to come under threat. Resistance level is at 156.15, followed by 156.40.”

1-3 WEEKS VIEW: “Downward momentum is picking up again; if USD breaks and stays below 155.35, the next level to watch is 154.50. Our most recent narrative was from last Friday (19 Jul, spot at 157.35), wherein ‘a breach of 158.50 would suggest that the weakness in USD that started more than a week ago (as annotated in the chart below) has stabilised.’ Yesterday, USD dropped sharply to a low of 155.55. Downward momentum is picking up again, and if USD breaks and stays below 155.35, the next level to watch is 154.50. On the upside, the ‘strong resistance’ level has moved lower to 157.15 from 158.50.”

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 holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.