EUR/JPY bears stay in control

EURJPY in the fourth week of losses.
Short-term bias skewed to the downside.
Next stop could be near 158.00.

Christina Parthenidou XM

EURJPY is set to post its fourth consecutive negative week, having retraced more than half of its September-October uptrend to reach the 159.00 level on Wednesday.

The 61.8% Fibonacci retracement level of 159.55 came to offer some support, but it seems the bears are not ready to give up control. The RSI and the Stochastic show no signs of a positive reversal despite hanging near their oversold levels, and the MACD has just started a new negative cycle below its red signal and zero lines, all suggesting downside risks could stay alive. Moreover, it’s worthy to note that the 20-day simple moving average (SMA) couldn’t cross above the 200-day SMA.

If the selling continues, traders could look for support within the 157.60-158.00 region, where the 78.6% Fibonacci mark and the ascending trendlines from 2022 are positioned. A violation there could send the price spiraling toward September’s low of 155.13, with a deeper dive to 154.20 on the cards. Additional declines from there could possibly pause near 153.00.

On the flip side, if the bulls manage to push the pair above 161.00, resistance could emerge near the 20- and 50-day SMAs currently within the 163.00-163.30 zone. The resistance trendline from July’s top could be a more important barrier at 164.00, whilst the 200-day SMA could give the green light for a rally to October’s high of 166.67.

In summary, bearish pressure is likely to persist, especially if EURJPY drops below 157.60-158.00.

Author

Christina Parthenidou

Christina joined the XM investment research department in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

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.