USD/JPY weaker, breaks below 111.00

Pablo Piovano FXStreet

The demand for the Japanese safe haven is picking up pace at the end of the week and is now dragging USD/JPY to test fresh daily lows in sub-111.00 levels.

USD/JPY in 3-day lows

The weekly decline in the pair has accelerated today following the softer tone from yields in the US money markets, with the 10-year benchmark challenging today’s lows around 2.24%.

JPY has also derived extra support from inflation figures in the domestic economy published earlier in the Asian session, where the Tokyo CPI showed consumer prices rose at an annualized 0.2% and 0.1% excluding food and energy costs.

Later in the NA session, the greenback should remain in centre stage in light of the second revision of Q1 GDP, seconded by April’s durable goods orders and the final print of May’s consumer sentiment gauged by the Reuters/Michigan index .

USD/JPY levels to consider

As of writing the pair is losing 0.77% at 110.95 with the immediate support at 110.51 (61.8% Fibo of 108.11-114.39) seconded by 110.21 (low May 18) and then 110.06 (200-day sma). On the flip side, a breakout of 111.99 (38.2% Fibo of 108.11-114.39) would open the door to 112.12 (high May 24) and finally 112.42 (20-day sma).

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.