USD/JPY to prolong its recent upward trajectory towards the 110.00 psychological mark

FXStreet Team FXStreet

USD/JPY added to its weekly gains and edged higher for the third consecutive session on Friday. A bullish flag breakout is in play, with the pair seeing fresh multi-month tops and counting but slightly overbought RSI on the daily chart might cap gains amid a subdued USD price action, FXStreet’s Haresh Menghani reports.

See – USD/JPY: Break above 109.30/40 to leave the 110.00 psychological level in play – OCBC

Key quotes

“Market participants now look forward to the US economic docket, featuring the releases of Personal Income/Spending figures, Core PCE Price Index and revised Michigan Consumer Sentiment index. The data could provide further hints about the US economic strength, which, along with the US bond yields, might influence the USD.”

“The USD/JPY pair on Thursday confirmed a fresh bullish breakout through a flag chart pattern and seems poised to prolong the recent strong upward trajectory. However, RSI (14) on the daily chart is still holding in the overbought territory and warrants some caution before positioning for any further appreciating move.”

“Immediate resistance is pegged near May 2020 swing highs, around the 109.80-85 region. This is closely followed by the key 110.00 psychological mark. Some follow-through buying should pave the way for a move towards the next relevant hurdle near the 110.75-80 supply zone.”

“The descending channel resistance breakpoint, currently near the 109.00 mark now seems to protect the immediate downside. Any subsequent slide might be seen as a buying opportunity near the 108.60-55 region, which should now act as a strong near-term base for the major.”

Author

FXStreet Team

FXStreet

EUR/USD sticks to positive bias above 1.1800 as trade jitters undermine USD

The EUR/USD pair builds on the previous day's modest gains and attracts some buyers for the second straight day on Thursday amid a softer US Dollar. Spot prices, however, lack bullish conviction and trade around the 1.1815-1.1820 area during the Asian session, up 0.10% for the day.

GBP/USD bounces as soft CPI boosts BoE cut bets

GBP/USD rose 0.42% on Wednesday, recovering toward 1.3600 in a session shaped by softer-than-expected UK inflation data and broad US Dollar weakness. The pair had been consolidating in a tight range between about 1.3450 and 1.3520 for the past few days following the sharp pullback from the late-January high near 1.3870, and Wednesday's move pushed price action back onto the high side of key moving averages.

Gold struggle with $5,200 extends ahead of more US-Iran talks

Gold is replicating the recovery moves seen in Wednesday’s Asian trading early Thursday, as buyers continue to flirt with the $5,200 level. Sustained US Dollar weakness and looming US-Iran talks aid the bright metal’s rebound.

Michael Saylor unveils Bitcoin-backed "Digital Credit" vision at Strategy World

Strategy CEO Michael Saylor delivered a keynote titled "Digital Credit" on Tuesday at Strategy World, positioning Bitcoin as the foundation of a new financial system built on what he described as "digital capital."

Nvidia delivers another monster earnings report, and forecasts big things to come

It was another monster earnings report from Nvidia for fiscal Q4. Revenues were $68.1bn, smashing estimates of $65bn. Gross profit margin was a healthy 75%, up from 73.5% in the prior quarter, and the outlook for this quarter was monstrous.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.