USD/JPY upside pressure mitigated below 144.00 – UOB

Pablo Piovano FXStreet

A break below the 144.00 level should alleviate the upside pressure in USD/JPY in the short-term horizon, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: Last Friday, USD fell to a low of 144.92 before closing at 145.37 (-0.32%). There is a slight increase in downward momentum, and USD is likely to trade with a downward bias today. However, any decline is unlikely to threaten the strong support at 144.00 (there is another support at 144.60). Resistance is at 145.60, followed by 146.00.

Next 1-3 weeks: In our most recent update from 11 Aug (spot at 144.80), we held the view that USD “could continue to advance, albeit likely at a slower pace.” We indicated that “the next level to watch above 145.05 is at 146.00.”. Last week, USD broke above 146.00 and rose to a high of 146.56, then pulled back. The pullback in overbought conditions and waning momentum suggest the odds for further sustained advance in USD are not high. However, only a breach of 144.00 (‘strong support’ level) would indicate that USD is not advancing further. Looking ahead, if USD were to break clearly above 146.56, any further advance is likely to face considerable resistance near 147.50.

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.