USDJPY has been advancing north for the fifth session in a row
The US dollar retains a bullish bias on Thursday, oscillating around the 109.00 figure in early European trading. The USD index has settled just below twenty-year highs registered earlier in the week, refraining from any significant correction despite the overbought conditions as the risk-averse market helps the currency find demand. EURUSD finished higher for the third day in a row on Wednesday to come under some pressure today. The euro holds above parity but continues to look vulnerable at this stage. The pair was last seen changing hands around 1.0042, down 0.16% on the day. The euro holds above parity so far, albeit keeps clinging to the lower end of the trading range. The shared currency could refrain from a deeper retreat towards fresh long-term lows in the near term, but any sustained recovery is still unlikely at this stage.
The cable has been losing ground for the fifth day in a row on Wednesday as dollar demand persists. The pair extended the decline towards fresh March 2020 lows around 1.1570 and was last seen changing hands around 1.1600, losing 0.16% on the day. As such, the bearish potential persists at this stage, especially as the pair keeps distancing itself from the descending 20-DMA, today at 1.1914. The immediate upside target now arrives at 1.1650. On the four-hour charts, the bearish momentum has eased somehow as the RSI holds in neutral territory, suggesting the selling momentum could slow down at this stage. On the longer-term timeframes, the technical picture stays negative, with the prices holding below the key weekly SMAs while the RSI keeps pointing lower despite the oversold conditions.
USDJPY has been advancing north for the fifth session in a row on Thursday, refreshing more than twenty-year highs beyond the 139.00 figure. The pair advanced towards the 139.70 zone before retreating slightly amid some profit-taking. As such, the pair keeps holding well above the ascending 20-DMA, today at 136.04 while also clinging to the upper end of the extended trading range. Following the initial rally, the dollar retreated back to 139.20 and was last seen trading up 0.18% on the day. In the near term, USDJPY needs to hold above the 139.00 mark for the overall bullish momentum to persist. A decisive rally above the 139.40 mark would bring fresh long-term tops into the market focus. The next major target for USD bulls now arrived at 140.00.
The price of bitcoin advanced slightly on Wednesday to close just above the $20,000 psychological level. However, the pressure reemerged today, with the largest cryptocurrency by market capitalization shedding more than 1.6% on the day during the European trading hours. The fact that bitcoin attracts sellers on rally attempts suggests that the bear market appears to be far from over. The recent downtrend was initiated after the coin was rejected from the $25,000 resistance level in mid-August. The BTCUSD pair has been on the defensive since then. The subsequent bearish breakout has brought the price of bitcoin to $19,500 for the first time since mid-July. As the digital currency struggles to stage a decisive bounce from the $20,000 mark for the time being, the path of least resistance remains to the downside in the near term.