USDJPY stays slightly off multi-year highs registered above 116.00 earlier this year
The greenback is back on the offensive these days as risk aversion has intensified again amid the ongoing tensions surrounding Ukraine and a new round of Western sanctions against Russia. The USD index is now back at May 2020 highs around 97.75 and could target the 98.00 figure if the buying pressure persists in the near term. In case of a downside correction, the USD index will first target the 97.50 immediate support zone, followed by the 97.30 region. Despite the potential profit-taking, the overall bullish trend will stay intact. EURUSD plunged below the 1.1100 figure and extended losses to 1.1065 during the European trading hours. Should the pressure persist in the near term, the common currency may challenge the 1.1000 figure. If risk sentiment improves, the pair can bounce back above 1.1200 in the coming days, but bearish risks keep dominating the market at this point
GBPUSD failed to hold above the 1.3400 figure yesterday, extending losses on Wednesday amid a stronger dollar. The pair dipped to fresh 2022 lows around the 1.3270 critical support. A break below this zone would pave the way towards 1.3240, followed by the 1.3200 figure. On the four-hour charts, the cable struggles to hold in the neutral territory, albeit the selling pressure has eased somehow in recent trading. GBPUSD was last seen clinging to the 1.3300 level as the greenback has retreated marginally from fresh long-term peaks. In a wider picture, however, the technical outlook remains downbeat as long as the prices stay below the 20-week SMA, currently at 1.3470. The inability to settle above 1.3300 during the upcoming North American session would push the cable back to the mentioned support zone.
Following two days of losses, USDJPY resumed the ascent on Wednesday. The pair is now back around a slightly ascending 20-DMA but is yet to overcome this immediate barrier around 115.25. Should the greenback fail to hold above the 115.00 figure in the short term, the selling pressure could reemerge and take the prices back to local lows around 114.70, followed by the ascending 100-DMA, currently at 114.40. On the upside, a robust ascent above the mentioned moving average would pave the way towards last week’s highs around 115.75. In the immediate term, the pair will likely continue to decide on the further direction in the 115.00 area. In a wider picture, USDJPY stays slightly off multi-year highs registered above 116.00 earlier this year.
Gold prices extended gains to the $1,950 area on Tuesday before losing some upside momentum today. The XAUUSD pair found intraday support around $1,930, looking steady during the European hours. The daily RSI has corrected slightly from the overbought territory and points lower, suggesting the prices could stay under some pressure in the immediate term. Should the mentioned lows give up anytime soon, the $1,900 figure will come back into the market focus. On the four-hour charts, the immediate support arrives at $1,915 where the 20-SMA lies. On the upside, a decisive ascent above $1,950 would open the door to September 2020 highs registered last week. The precious metal stays within a strong uptrend and could see fresh long-term tops if risk aversion continues amid the geopolitical developments surrounding Ukraine.