USD/JPY: Scope for a deeper setback to 109.38 – Credit Suisse

FXStreet Team FXStreet

USD/JPY stays seen at risk to a deeper corrective setback to its mid-March high at 109.38/36, potentially the 23.6% retracement of the Q1 rally at 108.99, analysts at Credit Suisse appraise.

USD/JPY set for a deeper setback, but with weakness still seen as corrective

“With support from its 13-day exponential average as well as price support at 109.85/75 broken we continue to look for a more concerted corrective setback. Below 109.58 should add weight to this view with support seen next at 109.38/36, the mid-March high.”

“An overshoot to the 23.6% retracement of the entire Q1 rally at 108.99 should be allowed for, but our bias would be to look for a floor in this 109.38/108.99 zone. Should weakness directly extend this can expose what we see as more important support at 108.50/33.”

“Resistance is seen at 109.95/97 initially, above which can now ease the immediate downside bias for a move back to 110.15 initially, then 110.57/75. Above this latter level though is needed to suggest the corrective setback is over.”

Author

FXStreet Team

FXStreet

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.