USD/JPY risks a potential breach of 105.00 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group believe USD/JPY still faces a probable break below the 105.00 level in the next weeks.

Key Quotes

24-hour view: “Yesterday, we held the view that USD ‘could grind lower to 104.80’ and ‘the next support at 104.40 is unlikely to come into the picture’. Our view was not wrong as USD dipped to 104.75 before recovering. Downward momentum has eased and for today, USD is expected to consolidate and trade between 104.75 and 105.30.”

Next 1-3 weeks: “USD dropped by -0.71% yesterday (closed at 105.37) and downward momentum has improved further. We continue to hold a negative view and as highlighted yesterday (27 Jul, spot at 105.90), ‘the next level to focus on is at 105.00’. In view of the strong downward momentum, a break of 105.00 would not be surprising. That said, shorter-term conditions are oversold and the next support at 104.40 is unlikely to come into the picture so soon. All in, USD has to move above 106.30 (‘strong resistance’ level was at 106.80 yesterday) in order to indicate the current weakness has stabilized.”

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 struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

The weekender: When software turns the blade on itself

Autonomous AI does not just threaten trucking companies and call centers. It challenges the cognitive toll booths that legacy software has charged for decades. This is not a forecast. No one truly knows the end state of AI.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.