USDJPY stays elevated but struggles to get back to multi-year highs above 116.00 as the safe-haven yen demand caps the bullish momentum
The safe-haven dollar extended the ascent to exceed the 98.00 figure for the first time since May 2020. The USD index jumped due to the renewed safe-haven flows after reports showed a fire broke out in a building at a Ukrainian nuclear complex. Also, the greenback was supported by Powell’s latest comments as the Fed governor said that they could consider the option of a 50 basis points rate hike if they fail to control inflation following the first series of rate increases. Against this backdrop, EURUSD plunged to the 1.1000 figure that has been capping further losses so far. Should this support zone give up anytime soon, the common currency will target the 1.0940 region. On the upside, the immediate resistance now arrives at 1.1030, followed by the 1.1065 region.
GBPUSD stays under pressure on Friday after another failed attempt to settle above the 1.3400 figure. The pair dipped to the 1.3300 figure that has been capping sellers during the European hours. A break below this support would open the door to deeper loses in the short term, shifting the market focus back to this year’s lows seen around 1.3270 earlier in the week. On the hourly charts, the RSI continues to trend lower but is yet to enter the oversold territory, suggesting there is room for further losses in the immediate term. Should the mentioned lows trigger another bounce, the nearest bullish target could be expected at 1.3350, followed by the 1.3400 figure. In a wider picture, the technical picture keeps deteriorating as the cable is trading below the key simple moving averages while the RSI keeps trending south in the neutral territory.
USDJPY rallied to 115.80 before correcting into the negative territory on Thursday. Today, the pair looks steady around 115.50 after a bounce from the 20-DMA earlier in the day. The dollar stays elevated but struggles to get back to multi-year highs above 116.00 as the safe-haven yen demand caps the bullish momentum. On the downside, risks for the greenback are limited as long as the prices stay above the 114.70 intermediate support, followed by the 114.40 zone. On the four-hour timeframes, USDJPY holds above the 20- and 100-SMAs, with the overall technical picture looking neutral for the time being. The pair could get back to yesterday’s tops during the North American session if the US jobs report surprises to the upside and thus triggers another rally in the greenback.
Earlier in the week, the bitcoin price advanced to the $45,000 figure in a three-day ascent from local lows. However, the coin failed to hold around three-week highs and came back under pressure as the bullish momentum has faded quickly. Early on Friday, the largest cryptocurrency by market capitalization briefly dipped below $41,000 to trim intraday losses in recent trading. The BTCUSD pair has been deriving support from the 20-DMA, currently at $40,500. Should this moving average give up anytime soon, the digital currency will derail the $40,000 figure to suffer deeper losses in the coming days. On the upside, the BTCUSD pair now needs to overcome the descending 100-DMA, currently at $44,500, in order to challenge this year’s highs in the $48,000 area, followed by the $50,000 psychological level.