USD/JPY refreshes session tops near 111.35 level

Haresh Menghani FXStreet

The USD/JPY pair caught some fresh bids at lower level and gained nearly 50-pips from session lows near the 110.85 region.

Currently trading around 111.25-30 region, testing session tops, the pair now looks to move past Monday's swing high amid improving investors' risk appetite, which was seen denting the Japanese Yen's safe-haven demand.

Adding to this, a modest pickup in the US Treasury bond yields, helping the key US Dollar Index to bounce off fresh 13-month lows, further collaborated to the pair's recovery move back beyond the 111.00 handle.

The pair's gained a follow through traction after the BOJ's newly appointed board members Hitoshi Suzuki and Goshi Kataoka refuse to comment on the need for more easing nor commented on the period of the current easing framework.

• BOJ’s Suzuki: No comment on how long the current easing framework can last

It, however, remains to be seen if the pair is able to build on the up-move to reclaim the important moving averages (50, 100 & 200-day SMAs) confluence support break area, now turned resistance near 111.65-75 region amid prevalent bearish sentiment around the buck.

Later during the NA session, the release of CB Consumer Confidence Index would now be looked upon for some fresh trading impetus. However, the near-term trend would remain dependent on the outcome of FOMC decision, due to be announced during the NY trading session on Wednesday.

• FX markets guided by central banks at the moment - HSBC

Technical levels to watch

A follow through momentum might continue to confront resistance near 111.65-75 region, above which the pair is likely to aim towards reclaiming the 112.00 handle before darting towards its next hurdle near 112.35-40 area.

On the downside, the 111.00 handle now becomes an immediate support to defend, which if broken would turn the pair vulnerable to break below one-month lows support near 110.60 level and head towards testing 110.25 horizontal support en-route the key 110.00 psychological mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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.