USD/JPY now focuses on 110.60 – UOB

Pablo Piovano FXStreet

Further gains in USD/JPY are likely beyond the 110.60 level, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the overbought rally in USD has room to extend but it is unlikely able to maintain a foot hold above the year-to-date high near 110.95’. However, instead of breaking 110.95, USD fell sharply to 110.15. Upward pressure has dissipated and the current movement is viewed as part of a consolidation phase. For today, USD is expected to trade between 110.10 and 110.60.”

Next 1-3 weeks: “Yesterday (17 Jun, spot at 110.65), we noted that ‘upside risk remains intact and the level to focus on now is at the year-to-date high near 110.95’. We did not quite anticipate the overnight drop to 110.15. While our ‘strong support’ level at 110.00 is still intact, upward momentum has been dented. In order to rejuvenate the waning momentum, USD has to move and stay above 1106.60 within these couple of days or the odds for USD to break above 110.95 would diminish. Conversely, a break of 110.00 would indicate that USD is not ready to move above 110.95.”

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 keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.