Yen demand pushes GBP/JPY back to 149.00

The JPY is solidly bid in Asia.
GBP/JPY drops to 148.94
Bulls need a positive follow-through to yesterday's long-tailed doji candle.

Omkar Godbole FXStreet Contributor

GBP/JPY fell to a low of 148.94 in Asia, courtesy of the strong Yen.

The Japanese Yen's rise contradicts the uptick in the treasury yields. Also, the resilience in the US stocks (Dow rallied 250 points yesterday) has failed to cap gains in the Japanese Yen. Japanese Finance Minister Taro Aso is at least in part responsible for the rise in the Yen in Asia.

The policymaker talked down the need for FX intervention, thus allowing Yen bulls to make their presence felt.

However, the drop contradicts the widening UK-Japan 10-year bond yield differential. The spread has widened in the GBP-positive manner to 157.5 basis points - highest since early May 2016.

GBP/JPY Technical Levels

As of writing, the currency pair is trading at 149.10. A positive follow-through to yesterday's long-tailed doji candle would confirm short-term bearish-to-bullish trend change and open doors for a corrective rally to150.82 (100-day MA) and 151.26 (38.2% Fib R of recent drop).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Expanding
1H	Bearish	Neutral	High
4H	Bullish	Neutral	Shrinking
1D	Strongly Bearish	Neutral	High
1W	Bearish	Neutral	Shrinking
Updated Feb 15, 02:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD recedes to daily lows near 1.1850

EUR/USD keeps its bearish momentum well in place, slipping back to the area of 1.1850 to hit daily lows on Monday. The pair’s continuation of the leg lower comes amid decent gains in the US Dollar in a context of scarce volatility and thin trade conditions due to the inactivity in the US markets.

GBP/USD resumes the downtrend, back to the low-1.3600s

GBP/USD rapidly leaves behind Friday’s decent advance, refocusing on the downside and retreating to the 1.3630 region at the beginning of the week. In the meantime, the British Pound is expected to remain under the microscope ahead of the release of the key UK labour market report on Tuesday.

Gold looks inconclusive around $5,000

Gold partially fades Friday’s strong recovery, orbiting around the key $5,000 region per troy ounce in a context of humble gains in the Greenback on Monday. Additing to the vacillating mood, trade conditions remain thin amid the observance of the Presidents Day holiday in the US.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.