USD/JPY Technical Levels: slips below 113.00 on bearish RSI divergence

The USD/JPY pair dipped below 113.00 soon before press time, adding credence to the bearish divergence of the relative strength index (RSI) seen in the hourly chart.
The bearish development on the hourly RSI also indicates the recovery rally from the recent low of 112.30 has likely ended.
The bearish RSI divergence would be invalidated if the pair rises above 113.23.

Omkar Godbole FXStreet Contributor

Hourly Chart

Trend: Bearish

USD/JPY

Overview:
    Last Price: 112.99
    Daily change: -8.0 pips
    Daily change: -0.0708%
    Daily Open: 113.07
Trends:
    Daily SMA20: 113.12
    Daily SMA50: 112.9
    Daily SMA100: 112.09
    Daily SMA200: 110.2
Levels:
    Daily High: 113.16
    Daily Low: 112.64
    Weekly High: 114.22
    Weekly Low: 112.64
    Monthly High: 114.56
    Monthly Low: 111.38
    Daily Fibonacci 38.2%: 112.96
    Daily Fibonacci 61.8%: 112.84
    Daily Pivot Point S1: 112.75
    Daily Pivot Point S2: 112.43
    Daily Pivot Point S3: 112.23
    Daily Pivot Point R1: 113.28
    Daily Pivot Point R2: 113.48
    Daily Pivot Point R3: 113.8

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.

Gold flirts with multi-week lows near $4,300

Gold accelerates its correction and recedes toward the key $4,300 mark per troy ounce on Tuesday. The yellow metal’s persistent decline comes in response to the solid performance of the US Dollar and a sharp move higher in US Treasury yields across the curve.

RBNZ set to raise interest rate to 2.75%

The Reserve Bank of New Zealand (RBNZ) is on track to deliver a follow-through interest rate hike, raising the Official Cash Rate (OCR) by another 25 basis points (bps) from 2.50% to 2.75% on Wednesday. Experts expect a consensus decision this week, unlike a deeply divided outcome predicted during the July monetary policy meeting.

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.