USD/JPY Technical Analysis: Pullback from six-week highs above 112.00 could be short-lived

USD/JPY's pullback from the six-week high of 112.08 to 111.83 is likely associated with the bearish divergence of the 14-hour relative strength index (RSI), although the short-term outlook still remains bullish, as the 5-day and 10-day moving averages (MAs) are trending north.
More importantly, the pair closed yesterday above the crucial resistance of 111.83 (Aug. 29 high), signaling a revival of the rally from the Aug. 21 low of 109.77. As a result, the pair looks set to test the highs above 113.00 in the next couple of weeks.
On the downside, a daily close below the 10-day MA would abort the bullish view.

Omkar Godbole FXStreet Contributor

Hourly Chart

Daily Chart

Spot Rate: 111.83

Daily High: 112.08

Daily Low: 111.81

Trend: bull breakout confirmed

Resistance

R1: 112.15 (Aug. 1 high)

R2: 112.53 (daily pivot R2)

R3: 113.33 (July 19 high)

Support

S1: 111.65 (support of Sep. 11 high as per the hourly chart)

S2: 111.39 (daily pivot S1)

S3: 111.33 (50-day moving average)

Author

Omkar Godbole

FXStreet Contributor

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

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.