USD/JPY to run beyond 108.00 on a break of 107.75

FXStreet Team FXStreet

The USD/JPY pair now seems to have stabilized just above mid-107.00s after the early uptick during the Asian hours met with some supply near the 107.70-75 region. This zone needs to be surpassed to see USD/JPY running beyond the 108.00 level towards monthly highs at 108.15, FXStreet’s analyst Haresh Menghani briefs.

Key quotes

“Japan's economy watchers survey showed that confidence about current economic conditions logged a record rise and jumped to 38.8 in June from 15.5 previously. The outlook index rose to 44.0 during the reported month as compared to May's 36.5 and 24.1 expected. May month trade deficit reduced to ¥556.8 billion from ¥966.5 billion previous. Adding to this, the Current Account surplus jumped to ¥1176.8 billion in May as compared to ¥1088.2 billion estimated.”

“Bulls might still wait for a sustained move beyond the 107.70-75 supply zone before positioning for any further near-term appreciating move. Above the mentioned barrier, USD/JPY is likely to surpass the 108.00 mark and test monthly tops, around the 108.15 region. Bulls might then aim to challenge the very important 200-day SMA, around the 108.35 region, which if cleared will set the stage for an extension of the recent recovery move from multi-month lows.”

“On the flip side, weekly lows, around the 107.25 region, now seems to act as immediate support and is closely followed by the 107.00 mark. Failure to defend the mentioned support levels might turn the pair vulnerable to resume its bearish trajectory and slide back towards the 106.00 round-figure mark.”

Author

FXStreet Team

FXStreet

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.