USD/JPY Technical Analysis: Mission accomplished as bulls reach 112.05 resistance

USD/JPY reached the 112.05 resistance, the February 2 low and is now consolidating below the level. USD/JPY current daily high is 112.19.
The momentum is strong and more up can be expected in the coming days as USD/JPY has broken out from a daily triangle formation.
USD/JPY has more than doubled its average daily range and a correction towards 111.60-111.80 area can be expected.

Flavio Tosti Independent Analyst

USD/JPY 15-minute chart

Spot rate: 112.01

Relative change: 0.90%
High: 112.19
Low: 110.76

Trend: Bullish

Resistance 1: 112.05 February 2 low
Resistance 2: 112.63 January 10 open
Resistance 3: 113.00 figure

Support 1: 111.60-111.80 area, 23.6% and 23.2% Fibonacci retracement low/high July 11
Support 2: 111.39 May 21 swing high
Support 3: 111.02-111.16 previous intraday swing lows
Support 4: 110.90 June 15 swing high
Support 5: 110.62-75 supply level and June 21 high
Support 6: 110.40 supply/demand level
Support 7: 110.21 June 22 high
Support 8: 109.90-110.00 area supply level and figure
Support 9: 109.55 June 19 low

USD/JPY daily chart

Author

Flavio Tosti

Independent Analyst

EUR/USD challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

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.