USD/JPY still targets a breakout of 112.00 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group remain bullish on the pair, eyeing a break above the key 112.00 handle in the next weeks.

Key Quotes

“USD dipped below 111.00 to touch a low of 110.92 but the down-move was not sustained. This pair is likely still caught in a consolidation phase and range trading is expected from here, likely between 110.90 and 111.70. 111.70 is quite a critical resistance and a clear break of this level could lead to a rapid rise to 112.10”.

“USD touched a low of 110.92 yesterday, several pips above the stop-loss for our bullish view at 110.85. While upward momentum has been dented, the overall technical outlook still appears positive and we continue to anticipate a move above the major 112.10 resistance. However, this has to happen soon as a prolonged consolidation at these levels would lead to a rapid loss in momentum”.

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 meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

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.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.