USD/JPY: Next on the upside comes 130.50 – UOB

Pablo Piovano FXStreet

According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, the next hurdle for USD/JPY emerges at 130.50 in the short term.

Key Quotes

24-hour view: “We highlighted yesterday that ‘upward momentum is still strong and USD could extend its advance to 129.30’. While our view for a higher USD was correct, we did not expect the manner by which it lifted off and surged to a high of 130.18. Further USD strength is not ruled out but in view of the deeply overbought conditions, the pace of advance is likely to be slower and a clear break of the next major resistance at 130.50 is unlikely. On the downside, a break of 129.50 (minor support is at 129.80) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “While we turned positive in USD on Monday (31 May, spot at 128.00). Yesterday (01 Jun, spot at 128.80), we highlighted that further USD strength would not be surprising and we indicated that resistance is at 129.30 followed by 129.80. We did anticipate the sharp rally as USD surged to a high of 130.18. While USD could continue to strengthen, overbought conditions suggest a slower pace of advance. The next resistance is at 130.50 followed by 130.80. Overall, only a break of 129.00 (‘strong support’ level was at 128.00 yesterday) would indicate that the rapid build-up in momentum has fizzled out.”

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.