USD/JPY room for a test of 111.55/60 – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, USD/JPY could slip back towards the 111.60/55 band in the near term.

Key Quotes

“The anticipated USD weakness exceeded our expectation by easily moving below the 112.30 target to hit a low of 111.91. The decline is severely over-extended but in view of the sharp drop, any rebound from here is likely to be limited. Overall, USD is expected to consolidate its loss and trade sideways at these lower levels, probably between 111.90 and 112.60”.

“While we indicated that a test of 112.30 would not be surprising, the ease of which this strong support was taken out was unexpected (low of 111.91 on Friday). The pressure is still on the downside and there is room for the current weakness to extend lower towards the major 111.55/60 support (low seen earlier this month). Stabilization is only upon a move back above 113.00”.

1. R3 114.23
2. R2 113.85
3. R1 113.30
PP 112.92
1. S1 112.37
2. S2 111.99
3. S3 111.44

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 slumps below 1.1800 on hawkish Fed Minutes, eyes on ECB succession

The EUR/USD pair tumbles to a near two-week low around 1.1785 during the early Asian session on Thursday. The US Dollar strengthens against the Euro on hawkish FOMC minutes that revived speculation about potential interest rate hikes if inflation remains elevated.

GBP/USD struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets

The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.

Gold yearns for acceptance above the $5,000 mark

Gold preserves 2% advance seen on Wednesday as buyers gather pace early Thursday. The US Dollar holds January Fed Minutes-led gains ahead of more US macro data. Gold needs a sustained break above the key $5,000 barrier; daily RSI stays bullish.

Top Crypto Gainers: World Liberty Financial, Sky, and Cosmos confront major resistance

World Liberty Financial, Sky, and Cosmos rank among the top gainers over the last 24 hours but face critical overhead resistance levels. WLFI gained momentum at the World Liberty Forum, an invite-only conference held at Mar-a-Lago by US President Donald Trump’s family, while SKY and ATOM reversed off a crucial support level.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.