USD/JPY retreats from highs, moving closer to 116.00 handle

Haresh Menghani FXStreet

The USD/JPY pair trimmed some of its gains and retreated over 30-pips from session peak level of 116.46.

Currently trading around 116.10-15 region, pre-Trump nervousness seems to be weighing on investor sentiment and driving flows towards the traditional safe-haven currency, Yen, and collaborating to some selling pressure around the major.

However, heading into the scheduled event risk, market participants might refrain from carrying big bearish US Dollar bets and hence, any sharp retracement from current levels seems unlikely.

Moreover, upbeat sentiment surrounding equity market, which tends to dent the Japanese Yen's safe-haven appeal, might also lend some support to the pair and contribute towards limiting downslide, at least for the time being.

Technical levels to watch

Immediate upside resistances is pegged near 116.50-55 area above which the pair seems all set to aim towards reclaiming 117.00 handle and continue gaining traction further towards 117.50-55 horizontal resistance.

On the flip side, 116.00 handle now seems to protect immediate downside, which if broken could accelerate the slide towards 115.75 intermediate support, en-route 115.30-25 important support.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 116.46

42% Bullish
33% Bearish
25% Sideways

Bias Bullish

1 Month

Avg Forecast 116.19

50% Bullish
42% Bearish
8% Sideways

Bias Bullish

1 Quarter

Avg Forecast 117.09

50% Bullish
31% Bearish
19% Sideways

Bias Bullish

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 hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold: Is the $5,000 level back in sight?

Gold snaps a two-day downtrend, as recovery gathers traction toward $5,000 on Wednesday. The US Dollar recovers from the overnight sell-off as rebalancing trades resume ahead of Fed Minutes. The 38.2% Fib support holds on the daily chart for now. What does that mean for Gold?

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.