USD/JPY to stabilise above the 102.88 December low – Commerzbank

FXStreet Team FXStreet

The yen is marginally lower after posting a December low at 102.88. The USD/JPY pair is expected to consolidate above this level as positive divergence on the daily RSI points to stabilisation, Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, briefs.

Key quotes

“Since the recent decline in USD/JPY to 102.88 has been accompanied by positive divergence on the daily RSI, we believe that the cross will stabilise above this level.”

“Only a currently not expected drop and daily chart close below the 102.88 current December low would open the way for the April 2009 and July 2013 highs as well as the February and May 2014 lows at 101.54/100.75 to be reached. Further down the 2016 low can be spotted at 99.00.”

“The outlook remains overall bearish while the cross stays below the seven month resistance line at 104.92.”

Author

FXStreet Team

FXStreet

EUR/USD accelerates losses, focus is on 1.1800

EUR/USD’s selling pressure is gathering pace now, opening the door to a potential test of the key 1.1800 region sooner rather than later. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and the publication of the FOMC Minutes later in the day.

GBP/USD turns negative near 1.3540

GBP/USD reverses its initial upside momentum and is now adding to previous declines, revisiting at the same time the 1.3540 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold picks pace, flirts with $5,000

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and pushing higher towards the key $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.