USD/JPY Technical Analysis: Relentless USD/JPY reaches a new target at 112.63 level

USD/JPY is consolidating after the currency pair reached 112.63 resistance, the January 10 open.
USD/JPY exceed its average daily range suggesting further gains can be capped but given the bull run context USD/JPY might continue higher nevertheless.
USD/JPY needs to breakout above 112.63 in order to move towards 113.38 January 8 high. To the downside, support is seen near the 112.05 February 2 low and in the 111.60-111.80 area.

Flavio Tosti Independent Analyst

USD/JPY 15-minute chart

Spot rate: 112.53

Relative change: 0.47%
High: 112.64
Low: 111.90

Trend: Bullish

Resistance 1: 112.63 January 10 open
Resistance 2: 113.38 January 8 high
Resistance 3: 114.45 October 27, 2017 high

Support 1: 112.05 February 2 low
Support 2: 111.60-111.80 area, 23.6% and 23.2% Fibonacci retracement low/high July 11
Support 3: 111.39 May 21 swing high
Support 4: 111.02-111.16 previous intraday swing lows
Support 5: 110.90 June 15 swing high

Author

Flavio Tosti

Independent Analyst

EUR/USD climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.