USD/JPY well bid for second straight session

Haresh Menghani FXStreet

The USD/JPY pair was seen building on Monday's recovery move back above 113.00 handle and jumped to 3-day tops amid renewed greenback strength.

Currently trading around 113.55 region, off few pips from session peak, the greenback regained traction during Asian session on Tuesday in wake of hawkish comments from Philadelphia Federal Reserve Bank President Patrick Harker, who supported interest rate-hike move at the Fed's next monetary policy meeting in March. The comments drove up the US Treasury bond yields and remained supportive for resurgent demand for the US Dollar.

Meanwhile, today's disappointing release of all-industry activity index from Japan and improving investors' risk appetite further undermined the Japanese Yen and collaborated to the pair's up-move on Tuesday.

Later during the day, speeches from various Fed officials would be scrutinized for possibilities of a Fed rate-hike action in March before investors' gain fresh insight over the Fed's near-term monetary policy outlook from the minutes of the latest FOMC meeting, due on Wednesday.

Technical levels to watch

A follow through buying interest above 113.70-75 area is likely to lift the pair beyond 114.00 handle towards its next resistance near 114.25-30 region. On the downside, retracement back below 113.25-20 immediate support is likely to drag the pair back towards 112.80 horizontal support before eventually dropping to 112.40 strong support.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 112.65

33% Bullish
33% Bearish
33% Sideways

Bias Neutral

1 Month

Avg Forecast 114.51

62% Bullish
8% Bearish
31% Sideways

Bias Bullish

1 Quarter

Avg Forecast 115.76

61% Bullish
0% Bearish
39% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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.