USD/JPY outlook: Bears likely to pause above key support zone at 140.00/139.57

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY edged higher on Tuesday after bears cracked psychological 140 support and hit new multi-month low (139.88) and approached key med-term support at 139.57 (2024 low posted on Sep 16).

Partial profit taking at this zone was quite logical action which provides a breather to larger bears, to consolidate and position for final attack at 139.57 pivot.

Oversold daily studies contribute to such scenario, although upticks are likely to be limited as technical picture is very bearish and current situation is very fragile that is expected to continue to fuel risk aversion to support safe-haven yen further deflate US dollar.

Bounce was so far mild, with stronger upticks to be ideally capped under falling daily Tenkan-sen (143.84) to keep larger bears fully in play.

Clear break of 140.00 and 139.57 pivots to signal continuation of 2025 downtrend (from 158.87, Jan peak) and expose targets at 137.23 (July 2023 trough) and 135.41 (Fibo 76.4% of 127.22/161.95) in extension.

Res: 141.17; 142.12; 142.91; 143.84.
Sup: 140.00; 139.57; 137.23; 135.41.

Interested in USD/JPY technicals? Check out the key levels

1. R3 143.63
2. R2 142.93
3. R1 141.89
PP 141.18
1. S1 140.14
2. S2 139.43
3. S3 138.39

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.