USD/JPY Technical Analysis: Probing key resistance at 111.46

Omkar Godbole FXStreet Contributor

USD/JPY is currently flirting with key resistance at 111.46, having picked up a strong bid near 111.20 an hour ago.

The 26 pip rise has invalidated the bearish view put forward by the rising channel breakdown confirmed yesterday.

Should the pair find acceptance above 111.46, then a sideways channel breakout would be confirmed. That would open the doors to resistance at 111.85-112.00.

The 10-year treasury yield continues to recover from over three-month lows below 2.6 percent hit earlier this week. Therefore, the probability of the pair finding acceptance above 111.46 is high.

It is worth noting that the bounce from 111.00 has established that psychological support as the level to beat for the bears.

Hourly chart

Trend: Bullish above 111.46

1. R3 111.88
2. R2 111.68
3. R1 111.42
PP 111.21
1. S1 110.95
2. S2 110.75
3. S3 110.49

Author

Omkar Godbole

FXStreet Contributor

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

GBP/USD weakens to two-week lows near 1.3520

GBP/USD trades on the back foot, returning to the low 1.3500s, or two-week troughs, on Tuesday. Cable’s bearish price action follows decent gains in the Greenback at the time when investors assess latest US data releases and the persistent uncertainty in the US-Iran crisis.

EUR/USD remains offered; breaks below 1.1600

EUR/USD now accelerates its daily correction, breaching below the key 1.1600 support level on Tuesday. The pair’s daily correction comes on the back of a decent bounce in the US Dollar despite disappointing US data releases and amid persistent geopolitical concerns.

No reaction from Gold; still targets $4,300

Gold extends Monday’s pessimism and slipped back to nearly three-week lows just above the $4,300 mark per troy ounce on Tuesday. The US Dollar’s rebound couple with rising US Treasury yields weigh on the precious metal despite tensions in the Middle East appear far from abated.

Crypto Today: Bitcoin, Ethereum, XRP struggle to extend gains despite ETF inflows

Bitcoin stalls while holding above $78,000 support as ETF inflows return. Ethereum takes a breather around $2,450 amid sustained institutional support. XRP remains pressured as the 200-day EMA provides immediate support.

Global bond market sell off haunts markets

Global sovereign bonds are selling off as we start a new month. The UK is, unsurprisingly, taking the biggest hit. Two and 10-year yields rose by 10 basis points at one point on Tuesday, and are currently higher by 7 and 8bps respectively.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.