USDJPY has been rallying for the third session in a row on Thursday as the yen rally faded
The dollar is mostly lower on Thursday, with the USD index struggling below the 106.50 zone that capped recovery attempts earlier in the day. The greenback lacks demand amid recovery in risk appetite, with market focus shifting towards the US NFP employment report due on Friday. Stronger-than-expected data could push the buck north across the market ahead of the weekend, while in the immediate term, downside risks continue to persist. EURUSD is trading slightly up on the day, holding just above the 20-DMA during the European hours. Despite the dollar’s weakness, the shared currency still lacks the recovery momentum to overcome the 1.0200 barrier on a sustained basis, which implies that downside risks continue to persist at this stage. Failure to hold above the mentioned moving average would add to bearish short-term technical signals.
GBPUSD turned slightly positive after two days of losses, but the upside bias looks too modest to bet on stronger gains in the near term. The pair has settled around 1.2165, adding less than 0.20% on the day ahead of the Bank of England decision later in the day. Should the central bank deliver a 50-basis-point hike, the cable may rally across the market in a knee-jerk reaction to the meeting outcome. However, the question is whether the potential gains would be sustained, with the overall tone surrounding the pound remains bearish despite the recent bounce. GBPUSD is yet to break the downtrend that has been dominating since mid-2021. On the longer-term timeframes, the technical picture stays downbeat, with the prices holding below the key weekly SMAs while the RSI struggles for direction.
The pair has been rallying for the third session in a row on Thursday as the yen rally faded. The pair managed to hold above the ascending 100-DMA during the recent slide to regain the 134.00 figure in recent trading. The dollar now faces the immediate barrier around 134.50 that could prevent the pair from bullish continuation in the near term. On the positive side, the daily RSI keeps pointing north in neutral territory while the mentioned moving average acts as a strong support zone that has been intact for nearly a year. On the four-hour timeframes, the outlook remains neutral, which implies that the greenback could struggle around the current levels before deciding on the further direction.
The bitcoin price has been trading in a tightening range these days, with bearish bias dominating the crypto market after rejection from mid-June highs seen around $24,600 last week. BTCUSD finished below $23,000 on Wednesday, clinging to this figure today. The prices struggle for direction as the overall risk sentiment has improved somehow, but the overall upside potential in the cryptocurrency market remains limited. Furthermore, the online activity remains subdued while on-chain indicator data has not improved substantially in recent days, suggesting BTC will likely struggle to resume its recovery rally in the near term as little new demand is coming in. On the downside, the immediate support now arrives at $22,600, followed by the $22,000 figure. Failure to regain the $23,000 mark on a daily closing basis would signal some further deterioration in the immediate technical picture.