USD/JPY appears well supported near 104.40 – UOB

Pablo Piovano FXStreet

In light of the recent price action, strong support in USD/JPY has emerged in the 104.40 region, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded between 105.58 and 106.16, narrower than our expected 105.50/106.50 range. Momentum indicators are still ‘flat’ and USD is expected to continue to trade sideways, likely between 105.40 and 106.10”.

Next 1-3 weeks: “After USD opened sharply lower and plunged yesterday, we indicated that “further decline is not ruled”. However, we added, “it is left to be seen if USD has enough momentum to challenge 104.00”. That said, the fleeting nature of the decline came as a surprise as USD rebounded strongly from 104.44 and easily exceeded our strong resistance at 106.20 (overnight high of 106.39). The breach of the strong resistance indicates that our view was proven incorrect within a day. The price action has resulted in a mixed outlook and USD could trade sideways within a broad 105.00/107.00 range for now (the 104.44 low is acting as a solid support and is unlikely to come into the picture for a while)”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.