USD/JPY Technical Analysis: Dips below 50-hour EMA as S&P 500 futures drop 0.5%

The USD/JPY cut through rising trendline support earlier today, the hourly chart shows and is now trading below the 50-hour exponential moving average (EMA) of 112.63.
The anti-risk JPY seems to have picked up a bid, courtesy of a 0.55 percent drop in the S&P 500 futures.
The key EMAs are biased toward the bulls - 50-hour, 100-hour and 100-hour EMAs are trending north. More importantly, the stacking order of the 50-hour EMA, above the 100-hour EMA, above the 200-hour EMA is a classic bull signal.
Further, the pair closed well above 112.73 yesterday, signaling a revival of the recovery rally from the recent low of 111.62. Hence, the spot could bounce off the 200-hour EMA of 112.54.
However, the support at 112.54 would be breached if the risk aversion worsens. Also, a daily close below 112.73 would weaken the odds of a rally to 113.18.

Omkar Godbole FXStreet Contributor

Hourly Chart

Spot Rate: 112.57

Daily High: 112.84

Daily Low: 112.55

Trend: bullish

Resistance

R1: 112.89 (previous day's high)

R2: 113.09 (50% Fib R of 114.55/111.62)

R3: 113.18 (July high)

Support

S1: 112.54 (5-day EMA)

S2: 112.34 (10-day EMA)

S3: 112.03 (50-day EMA)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD corrects lower, returns to 1.1650

EUR/USD could not sustain an earlier move to fresh tops just above 1.1680 on Thursday, coming under fresh selling pressure and revisiting the mid-1.1600s in the latter part of the NA session. The pair’s correction comes in response to an acceptable bounce in the US Dollar.

GBP/USD attempts some consolidation near 1.3350

GBP/USD is alternating gains with losses near 1.3350 on Thursday. The Greenback’s attempts to recover aren't really sticking, upbeat data or not, as traders stay confident that the Fed will deliver a 25 bps rate cut at its final meeting of the year.

Gold flat lines near $4,200 ahead of US PCE inflation release

Gold price (XAU/USD) trades on a flat note near $4,205 during the early Asian trading hours on Friday. Rising US Treasury yields and upbeat US jobs data cap upside for the precious metal. Traders might prefer to wait on the sidelines ahead of the key US inflation data. The US delayed the Personal Consumption Expenditures Price Index report for September, which will be published later on Friday.

XRP slides amid record on-chain activity, mixed technical signals

Ripple (XRP) is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.

Why the Fed may cut rates in December: Understanding the policy shift

The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.

XRP edges lower despite record on-chain activity and steady ETF inflows

Ripple is trading under pressure at the time of writing on Thursday, after bulls failed to break the short-term resistance at $2.22. The reversal may extend toward Monday’s low of $1.98, especially if risk-off sentiment persists in the broader cryptocurrency market.