USD/JPY: defying gravity around 110.00

Valeria Bednarik FXStreet

USD/JPY Current price: 110.04

The dismal market mood keeps boosting the Japanese currency.
The Japanese Markit Services PMI resulted in 51.8 in April, down from 52.0 in March.

The Japanese yen remains strong as uncertainties related to the US-China trade relationship and Brexit keep sending investors in search of safety. The USD/JPY pair lost the 110.00 level overnight, with a subsequent attempt to recover ground meeting sellers around 110.20. The Japanese Markit Services PMI resulted in 51.8 in April, deteriorating from the previous 52.0, adding to the sour sentiment that dominated the Asian session.

US Treasury yields continued easing, with the benchmark yield on the 10-year note currently at 2.43%, below Tuesday's low. Equities were sharply down in Asia, following the lead of Wall Street, with European indexes also in the red, although with losses limited. The US won't release relevant data today.

As for the technical perspective, the low so far has been 109.89, with the pair battling at the time being with the 110.00 figure. In the 4 hours chart, technical indicators remain within negative levels and have resumed their declines following a modest upward corrective movement, while the 20 SMA maintains its downward slope far above the current level. The 100 SMA turned lower above the 200 SMA, further indicating the strength of sellers. A break below 109.90 should open doors for further declines, with a possible target for the upcoming sessions coming at 108.60.

Support levels: 109.90 109.60 109.25

Resistance levels: 110.20 110.50 110.85

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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.