USD/JPY technical analysis: Greenback challenges daily highs against Yen, trading above the 106.00 handle

USD/JPY starts the week by erasing most of last Friday’s selloff.
The levels to beat for bulls are at the 106.30 and 106.55 resistances.

Flavio Tosti Independent Analyst

USD/JPY daily chart

USD/JPY is erasing most of Friday’s drop while trading below its main daily simple moving averages (DSMAs). The market is trading back above the 106.00 handle as the bear trend is on hold.

USD/JPY 4-hour chart

USD/JPY bouncing up sharply just above the 50/100 SMAs. Bulls are looking to trade above 106.30 resistance to reach 106.55, 106.77 and 107.07 according to the Technical Confluences Indicator.

USD/JPY 30-minute chart

Dollar/Yen is challenging the 106.30 level and 200 SMA, suggesting bullish momentum in the near term. Immediate support is seen at 106.12, 105.92 and 105.70 according to the Technical Confluences Indicator.

Additional key levels

USD/JPY

Overview
Today last price	106.22
Today Daily Change	0.84
Today Daily Change %	0.80
Today daily open	105.38

Trends
Daily SMA20	106.61
Daily SMA50	107.47
Daily SMA100	108.86
Daily SMA200	109.9

Levels
Previous Daily High	106.74
Previous Daily Low	105.26
Previous Weekly High	106.74
Previous Weekly Low	105.26
Previous Monthly High	109.01
Previous Monthly Low	107.21
Daily Fibonacci 38.2%	105.82
Daily Fibonacci 61.8%	106.17
Daily Pivot Point S1	104.85
Daily Pivot Point S2	104.31
Daily Pivot Point S3	103.36
Daily Pivot Point R1	106.33
Daily Pivot Point R2	107.27
Daily Pivot Point R3	107.81

Author

Flavio Tosti

Independent Analyst

EUR/USD breaks below 1.1800, two-week lows

EUR/USD’s selling pressure is gathering pace now, breaching below the key 1.1800 yardstick to hit new two-week troughs on Wednesday. The pair’s pullback comes on the back of marked gains in the US Dollar following US data releases and ahead of the publication of the FOMC Minutes.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Fed Minutes to shed light on January hold decision amid hawkish rate outlook

The Minutes of the Fed’s January 27-28 monetary policy meeting will be published today. Details of discussions on the decision to leave the policy rate unchanged will be scrutinized by investors.

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.