USD/JPY to test 152.25 before the risk of a pullback increase – UOB Group

FXStreet Insights Team FXStreet

There is scope for US Dollar (USD) to test 152.25 before the risk of a pullback increases. In the longer run, outlook is mixed; USD could trade between 150.00 and 153.00 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD might trade between 150.00 and 153.00 for now

24-HOUR VIEW: "Our view for USD to 'trade in a sideways range of 150.00/151.00' turned out to be incorrect, as USD soared and reached a high of 152.17. The sharp rise appears excessive, but there is scope for USD to test 152.25 before the risk of a pullback increases. We do not expect the major resistance at 153.00 to come into view. On the downside, if USD breaks below 151.10 (minor support is at 151.40), it would mean that USD is more likely to range-trade rather than testing 152.25."

1-3 WEEKS VIEW: "In our latest update from last Friday (17 Oct, spot at 150.15), we indicated that 'the odds of USD breaking clearly below 149.50 are increasing.' USD subsequently dropped to a low of 149.36 before rebounding strongly. Yesterday (21 Oct, spot at 150.55), we highlighted that 'downward momentum has slowed, but as long as the ‘strong resistance’ level at 151.35 is not breached, there is a chance for USD to retest the 149.35 level.' We did not expect USD to break above 151.35, as it soared to a high of 152.17. The recent sharp but short-lived swings have resulted in a mixed outlook, and USD could trade between 150.00 and 153.00 for now."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.