USD/JPY moves higher to 114.20, session tops

Spot climbs higher on US yields rally
DXY drops to session lows near 93.85
US data on sight

Pablo Piovano FXStreet

The Japanese currency remains entrenched into the negative ground on Wednesday and is now helping USD/JPY to advance to fresh 3-month tops in the 114.30 area.

USD/JPY in multi-week tops

The buying pressure around the pair stays on the rise today following the up move in yields of the US 10-year reference to fresh tops around the critical 2.45% neighbourhood, or 7-month peaks.

However, the US Dollar Index (DXY) continues to ignore the bull run in yields and is currently testing daily lows in the 93.90/85 band, down smalls for the day.

In the meantime, investors remain anxious waiting for President Trump’s decision on the successor of Chief Janet Yellen. It is worth mentioning that (pro-USD?) candidate J.Taylor still appears as the front runner over J.Powell and K.Warsh.

In the US data space, September’s new home sales and durable goods orders are next on tap ahead of the EIA’s weekly report on crude oil inventories. In Japan, critical inflation figures are due on Friday.

USD/JPY levels to consider

As of writing the pair is gaining 0.21% at 114.15 and a break above 114.25 (high Oct.25) would open the door to 114.39 (high May 11) and finally 114.51 (high Jul.11). On the other hand, the immediate support is located at 113.25 (low Oct.24) seconded by 112.90 (10-day sma) and then 111.75 (200-day sma).

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 trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.