USDJPY exceeded the 139.00 mark to register fresh multi-year highs around 139.40 before retreating marginally
The US dollar remains elevated, clinging to the upper end of the trading range as Fed rate hike bets continue to boost the currency. The USD index rallied to fresh two-decade highs around 108.65 earlier on Thursday before retreating marginally in recent trading. The dominating risk-off tone in the global financial markets adds to dollar’s strength due to its safe-haven status. The next upside target for the greenback arrives at 109.00. As such, EURUSD keeps oscillating around the parity level after yesterday’s failed attempt to settle above the 1.0100 mark. As of writing, the shared currency was changing hands around 1.0025, down 0.35$ on the day. Earlier today, the pair was rejected from the 1.0060, with downside risks persisting both in the short- and medium term. On the four-hour charts, the euro remains capped by the descending 20-SMA, while the RSI looks directionless in neutral territory, suggesting the pair may refrain from another plunge below parity in the immediate term.
The cable plunged to fresh March 2020 lows just above the 1.1800 mark earlier in the week before bouncing marginally. The pair briefly jumped to the 1.1970 area on Wednesday but failed to preserve the recovery momentum and retreated to finish just above the flat-line. On Thursday, the pound stays below the 1.1900 mark that now represents the immediate target for the British currency. The fact that the daily RSI hasn’t entered oversold territory just yet, suggests the pound is likely to see even deeper losses at this stage before staging a reversal eventually. On the four-hour timeframes, GBPUSD stays below the descending 20-SMA while the RSI continues to target south, which implies that the UK currency has room for further losses in the immediate term. A break below the 1.1820 zone would pave the way towards the 1.1800 figure that capped the pressure earlier in the week.
USDJPY extends the ascent despite the extremely overbought conditions. The pair exceeded the 139.00 mark to register fresh multi-year highs around 139.40 before retreating marginally amid profit-taking. The dollar was last seen changing hands around 138.80, up nearly 1% on the day. As such, the pair has approached the 140.00 psychological mark which represents the nearest target for USD bulls. On the shorter-term timeframes, USDJPY shows some corrective signs, but the overall picture remains upbeat, with prices holding above the key moving averages. Should profit-taking continue in the immediate term, the greenback may get back below 138.00, followed by the 136.60 intermediate support zone on the way towards the ascending 20-DMA, today at 136.11. In a wider picture, the overall bullish trend remains intact while above at least the 120.00 mark last seen in March.
The bitcoin price keeps struggling these days, lacking buying demand despite low levels. The BTCUSD pair bounced marginally on Wednesday after five days of losses in a row. However, the coin failed to preserve the momentum and came under renewed selling pressure today, holding below the $20,000 figure. Bitcoin is yet to find a bottom, with the so-called crypto winter is here to stay for some time. BTC briefly exceeded the $22,000 mark earlier this month but the renewed selling pressure confirmed that the market is not ready for any sustained rebound just yet, with bearish sentiment dominating the market further. Should the pressure intensify any time soon, failure to hold above the $18,700-$18,600 zone would pave the way below the $18,000 mark for the first time in nearly a month. On the upside, a decisive break above $20,000 would open the road to $22,000, followed by the $23,300 intermediate barrier on the way towards $26,000.