USD/JPY Price Analysis: The bears are running into major support ahead of key US data

USD/JPY bulls need to commit at the daily support structure near a 61.8% ratio of the recent bullish impulse.
Should the US Dollar break higher into the 102s DXY, then the 132.00 area and beyond will be eyed.

Ross J Burland FXStreet

As per the prior analysis, on the back of the Consumer Price Index beat, the Yen indeed travelled in the forecasted trajectory despite there being red news on the US calendar later today:

USD/JPY prior analysis

USD/JPY update

The pair made the correction and subsequent continuation to the downside and is now embarking on a retest of the lows. However, the bears need to get below current support at 129.70. Also, 129.50 is a likely area of firmer support for the day ahead. It all depends now on the US Dollar.

DXY H1 chart

The US Dollar has firmed at the 78.6% and there are prospects of a move higher to crack the trendline resistance and base in the territory above 102.00 having cleared some barriers on Thursday following the US GDP data. In such a scenario, USD/JPY bears will be feeling the heat as we head over to the Federal Reserve interest rate decision on February 1.

USD/JPY technical analysis, daily chart

Ther price has been trailing in a bearish cycle as per the daily chart above.

zooming in, we can see that there has been a recent correction to the M-formaiton's neckline and a 61.85 ratio reverison. The price has since stalled into a coil, on the backside of the trendline, likely meaning a breakout is imminent with there being an upside bias.

The bulls need to commit at the daily support structure near a 61.8% ratio of the recent bullish impulse and should the greenback breakout as illustrated above, then the 132.00 area and beyond will be eyed.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD sticks to positive bias above 1.1800 as trade jitters undermine USD

The EUR/USD pair builds on the previous day's modest gains and attracts some buyers for the second straight day on Thursday amid a softer US Dollar. Spot prices, however, lack bullish conviction and trade around the 1.1815-1.1820 area during the Asian session, up 0.10% for the day.

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

Gold retains positive bias amid sustained safe-haven demand, softer USD

Gold attracts some buyers for the second straight day as trade jitters and geopolitical tensions ahead of the US-Iran nuclear talks underpin demand for safe-haven assets. Apart from this, a softer US Dollar further supports the bullion, though the underlying bullish sentiment could cap gains. Bulls might also opt to wait for acceptance above the $5,200 mark before positioning for any meaningful appreciating move.

AUD/USD rises toward three-year highs on RBA rate hike bets

AUD/USD remains stronger for the third successive session, trading around 0.7120 during the Asian hours on Thursday. The pair advances toward its three-year high of 0.7147, last touched on February 12, as the Australian Dollar strengthens following hotter-than-expected inflation data from Australia, reinforcing expectations of further interest rate hikes by the Reserve Bank of Australia this year.

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.