USD/JPY treading water around 112.60

Pablo Piovano FXStreet

The greenback is alternating gains with losses vs. its Japanese peer at the beginning of the week, taking USD/JPY to a consolidative theme around 112.60 for the time being.

USD/JPY supported near 112.30

After bottoming out near 112.30 in early trade, the pair is now following a sideline pattern around 112.60, all amidst consolidation in the buck as investors continue to adjust to Friday’s results from US payrolls during last month.

Spot lost upside momentum and keeps the trade in tandem with yields of the US 10-year reference, which eased some ground after printing tops around 2.40% on Friday’s optimism after healthy wage inflation figures.

USD should stay under pressure ahead in the week in light of the FOMC minutes expected on Wednesday, where market participants will closely follow the statement and the Committee’s view on further tightening, balance sheet reduction and inflation prospects.

Further news around JPY, speculative net shorts climbed to the highest level since August 8 during the week ended on October 3, as shown by the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is advancing 0.04% at 112.67 facing the immediate hurdle at 113.44 (high Oct.6) followed by 114.51 (high Jul.11) and finally 115.51 (high Mar.10). On the other hand, a break below 112.33 (low Oct.4) would open the door to 111.91 (200-day sma) and then 111.77 (61.8% Fibo of 114.51-107.33).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD flat lines around 1.1900; looks to US NFP report for fresh directional impetus

The EUR/USD pair is seen oscillating in a narrow trading band around the 1.1900 mark during the Asian session on Wednesday as traders opt to wait for the release of US monthly employment details before placing fresh directional bets.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold awaits US Nonfarm Payrolls data for a sustained upside

Gold remains capped below $5,100 early Wednesday, gathering pace for the US labor data. The US Dollar licks its wounds amid persistent Japanese Yen strength and potential downside risks to the US jobs report. Gold holds above $5,000 amid bullish daily RSI, with eyes on 61.8% Fibo resistance at $5,141.

Ethereum: Whales buy the dip amid rising short bets

Following one of Ethereum's largest weekly drawdowns, whales are slowly returning to action alongside a drop in retail selling pressure. After slightly selling into the decline at the start of the month, whales or wallets with a balance of 10K-100K ETH began buying the dip last Wednesday as prices crashed further.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.