Is EUR/JPY losing its shine? [Video]

Christina Parthenidou XM

EURJPY has been declining over the past three days, stopping at the 148.58 zone that has been preventing upside and downside movements since April. The 23.6% Fibonacci retracement of the 138.81-151.60 upleg is adding extra credibility to the region.

Spring’s upward structure seems to be cracking given the lower high of 151.00 that preceded the latest bearish correction. That said, the rising simple moving averages (SMAs) have yet to reflect a weakening trend.

Meanwhile, the momentum indicators remain negatively charged, with the RSI set to enter the bearish region below its 50 neutral mark. That might be a warning sign that selling appetite could persist in the coming sessions. Yet, traders might wisely wait for a clear close below 148.58, and perhaps beneath the 50-day SMA at 147.82, before targeting the 38.2% Fibonacci level of 146.70. Another step lower would downgrade the short- and medium-term picture, likely activating a quick downfall towards the 50% Fibonacci mark of 145.20.

Should the bulls lift the price back above the 20-day SMA, they may initially get congested within the 150.73-151.60 region, where a couple of trendlines are located. Surpassing that wall, the positive trend could continue towards the long-term resistance line from August 2020 at 153.60.

In a nutshell, EURJPY seems to be losing its shine as the upward pattern in the price has started to lean on the downside. A step below 148.58, and more notably a close beneath 147.82, could activate fresh selling orders.

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.