As the dollar looks strong nearly across the market, it looks like USDJPY could jump above the 114.00 figure later today
The dollar is steady on Friday following yesterday’s gains. EURUSD has settled around the descending 20-DMA following rejection from the 1.1350 local barrier. As the common currency is back below the 1.1300 figure, long-term lows are now back in the market focus. The pair could see deeper losses in the short term if the dollar rallies ahead of the weekend. The immediate support now arrives at 1.1260, followed by 1.1230. On the upside, the common currency needs to get back above 1.1300 on a daily closing basis and retarget the 1.1350 mentioned hurdle. As long as this zone represents resistance, bearish risks prevail. On the hourly charts, the technical picture keeps deteriorating, with the RSI pointing south but is yet to enter the oversold territory, suggesting there is room for further losses in the near term.
The cable keeps struggling for direction around the 1.4200 figure, with bearish bias prevailing during the European hours. It looks like the pair could see another dip to the 1.3160 area in the short term as dollar demand is picking up gradually as the US CP report looms. The daily RSI is now flirting with the 30 figure and is about to enter the oversold territory. In case of a bounce, the pound could target the 1.3260 area first but will likely stay below the descending 20-DMA anyway. As a reminder, this moving average has been capping on the upside since late October, suggesting the pair would need a strong bullish catalyst to challenge this hurdle. On the four-hour timeframes, GBPUSD is still being capped by the descending 20-SMA, currently at 1.3222.
USDJPY keeps treading water below 114.00 after the pair was once again rejected from the 20-DMA that has been capping gains since the plunge witnessed on November 26. Earlier in the day, the greenback bounced from the 113.30 area to turn positive and was last seen flirting with intraday highs around 113.70. Should this intermediate barrier give up anytime soon, the prices would challenge the mentioned 20-DMA, currently at 113.90. As the dollar looks strong nearly across the market, it looks like USDJPY could jump above the 114.00 figure later today if the upcoming US inflation report exceeds expectations and pushes the greenback higher ahead of the weekend. On the downside, the immediate support arrives at 113.25 where this week’s lows lie.
After a solid drop on Thursday, the BTCUSD pair has settled marginally above $48,000 on Friday, with bearish risks persisting. This week, the largest cryptocurrency by market capitalization derives support from the 200-DMA, currently at $46,500. As long as this moving average stays intact, the downside potential looks limited. However, it seems that the path of least resistance remains to the downside at this point. To shrug off the current pressure, the coin needs to stage a decisive bounce from the current levels and settle above the $50,000 psychological figure in order to regain the $52,000 barrier eventually. Of note, as a result of the recent drop, bitcoin dominance dipped below 40%, to 37.8%, hitting the lowest level in nearly four years.
Gold prices have been losing ground for the third session in a row on Friday as the dollar remains strong and steady. Earlier in the week, the precious metal failed to overcome local resistance represented by the 100- and 200-DMA around $1,790 and has been on the defensive since then. The XAUUSD pair dipped to one-week lows around $1,770 during the European hours and could threaten the $1,760 area if the selling pressure intensifies later today. Of note, the daily RSI is pointing slightly lower in the neutral territory while the prices stay below the key simple moving averages, suggesting the bullion could stay under pressure in the near term. Only a decisive break above the $1,800 figure would improve the technical picture at this stage.