USD/JPY: can we trust the risk driven rallies yet? [Video]

Richard Perry Independent Analyst

USD/JPY

Looking at Dollar/Yen, the question is one of whether we can trust the risk driven rallies yet. If so, then the corrective outlook on USD/JPY will begin to fade and the two week downtrend will begin to break. The trend resistance is at 108.90 today and it is being tested. However, there have not been two consecutive positive candles on a closing basis in more than two weeks now, so if this can be achieved today then it could be the start of something for the bulls. Momentum indicators still edging lower in negative configuration, so given the downtrend being intact, the strategy remains one to sell into strength. However, a positive candle formation today could shift this narrative. The Stochastics are now decelerating in their decline and are back around levels where previous rallies have picked up during these waves of near term bull and bear runs over the past few months. Initial support at 108.30 held yesterday and how the market responds to the near term pivot of resistance around 108.70 and downtrend at 108.90 will be key in today’s session. A close above 108.90 would begin to open a more significant recovery, with resistance at 109.15/109.25.

Author

Richard Perry

Independent Analyst

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.