USDJPY is steadying after yesterday’s plunge that pushed the dollar to fresh late-August lows
The USD index keeps bleeding after a brief dip towards fresh three-month lows around 105.35 on Tuesday. The greenback has settled around 106.40 today, staying in the negative territory on the weekly charts. The nearest support for the DXY arrives around 106.00, followed by the 105.70 zone and the 105.35 mentioned low. As such, the euro retains a bullish tone these days. EURUSD briefly rallied to late-June highs around 1.0480 before finishing around 1.0350 on Tuesday. Today, the shared currency continues to advance north, albeit the momentum looks fairly modest at this stage. If the buck continues to lose ground in the days to come, the euro may regain the 1.0500 mark and thus settle above the descending 200-DMA, today ay 1.0423. In the immediate term, the pair needs to get back above 1.0400 in order to extend the local rally from multi-year lows registered around 0.9535 in September.
The pound peaked around 1.2030 on Tuesday before retreating marginally today as traders opted to take some profit after a spectacular rally. The cable slipped below 1.2000 to hold above both the 20- and the 100-DMAs. The pair is unlikely to see a more aggressive decline at this stage as the dollar lacks demand across the board. Next, traders will focus on the US retail sales report due later in the week. Should the data come in higher than expected, the greenback may see a rally, thus pressuring GBPUSD. Now, the pound needs to regain the 1.1900 level in order to retain a bullish tone and extend the ascent during the week. On the negative side, the daily RSI turned slightly lower in neutral territory, suggesting the cable could at least refrain from bullish extension in the near term. GBPUSD was last seen changing hands around 1.1840, down 0.15% on the day.
The USDJPY pair stays below the directionless 100-DMA, steadying after yesterday’s plunge that pushed the dollar to late-August lows around 137.67. The greenback stays on the defensive, albeit refraining from another major retreat on Wednesday. The pair holds below the mentioned moving average, today at 140.87, with the near-term technical picture looking mixed. At the same time, a broader uptrend stays intact while above the 125.00 zone last seen in April. As a reminder, USDJPY notched fresh multi-year highs around 152.00 in October to finish the third consecutive month with solid gains. In the immediate term, the greenback needs to regain 140.00 in order to avoid another retreat. Otherwise, the pair is likely to suffer fresh losses, with the 135.00 support zone coming into the market focus at this stage. The USD was last seen trading around 139.90, up 0.44% on the day.
During the latest rally, gold exceeded the $1,750 psychological level for the first time since August to extend gains towards three-month highs around $1,786. After peaking, the bullion retreated marginally amid profit-taking to settle around $1,770 on Wednesday. Despite some retreat, the bullion retains a bullish tone, also holding well above both the 100- and the 20-DMAs. The precious metal struggles for direction today while also staying above the $1,750 mark that remains in focus for the time being. The bullion was last seen changing hands around $1,773, down less than 0,1% on the day. The XAUUSD pair is likely to stay above the mentioned 100-DMA in the near term, but in a wider picture, bearish risks persist despite the recent rally. On the downside, the nearest significant support now arrives at $1,750, followed by the $1,725 zone.