USD/JPY: Rising bets for a move above 110.55 – UOB

Pablo Piovano FXStreet

USD/JPY is now expected to attempt a surpass of the 110.55 level in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways within a 109.75/110.10 range’ yesterday. However, USD dropped briefly to 109.57 during NY session before rebounding strongly. USD traded on a firm note during early Asian hours and the build-up in momentum could lead to a test of 110.35. The major resistance at 110.55 is unlikely to come under threat. Support is at 109.90 followed by 109.70.”

Next 1-3 weeks: “We have expected USD to trade within a 109.30/110.55 range since 19 Aug (spot at 109.90). Our view was not wrong as USD traded within the range for the past two weeks. Shorter-term momentum is beginning to build and the risk for USD to break the top of our expected range at 110.55 has increased. The risk of a break of 110.55 would continue to increase as long as USD does not move below 109.50 within these few days. Looking ahead, a break of 110.55 would shift the focus to 110.80.”

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

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

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

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.