Slobodan Drvenica
Windsor Brokers
USD/JPY
The USDJPY dipped after Tokyo core inflation rose above expectations in January, increasing pressure on Bank of Japan to start phasing out its ultra-loose policy.
Near-term price action holds in a sideways mode, ranging around 130 level for the fifth straight day and on track to fail again to register a weekly close above 130 that would add to signals that recovery leg from 127.22 (Jan 16 low) was limited (capped by falling 20DMA) keeping larger bearish structure intact.
Technical studies on daily chart are bearish, with minor support from 10DMA (129.39), keeping the downside at risk.
Weekly close below 10DMA would further weaken near-term structure and open way for attack at key supports at 127.58/22 (cracked Fibo 61.8% of 112.53/151.94/Jan 16 low), loss of which would signal continuation of larger downtrend.
Conversely, sustained break through pivotal 130.00/37 barriers (psychological / 20DMA), would improve near-term outlook and open way for fresh recovery.
Res: 130.00; 130.36; 131.12; 131.57.
Sup: 129.39; 128.34; 127.58; 127.15.
Interested in USD/JPY technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD clings to recovery gains near 1.0850 ahead of Fedspeak
EUR/USD trades in positive territory near 1.0850 on Friday following a four-day slide. China's stimulus optimism and a broad US Dollar correction help the pair retrace the dovish ECB decision-induced decline. All eyes remain on the Fedspeak.
GBP/USD pares UK data-led gains at around 1.3050
GBP/USD is trading at around 1.3050 in the second half of the day on Friday, supported by upbeat UK Retail Sales data and a pullback seen in the US Dollar. Later in the day, comments from Federal Reserve officials will be scrutinized by market participants.
Gold at new record peaks above $2,700 on increased prospects of global easing
Gold (XAU/USD) establishes a foothold above the $2,700 psychological level on Friday after piercing through above this level on the previous day, setting yet another fresh all-time high. Growing prospects of a globally low interest rate environment boost the yellow metal.
Crypto ETF adoption should pick up pace despite slow start, analysts say
Big institutional investors are still wary of allocating funds in Bitcoin spot ETFs, delaying adoption by traditional investors. Demand is expected to increase in the mid-term once institutions open the gates to the crypto asset class.
Canada debates whether to supersize rate cuts
A fourth consecutive Bank of Canada rate cut is expected, but the market senses it will accelerate the move towards neutral policy rates with a 50bp step change. Inflation is finally below target and unemployment is trending higher, but the economy is still growing.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.