USDJPY could challenge the 130.00 mark should the bearish momentum persist
The dollar is back on the defensive after modest recovery attempts, targeting June lows registered last week around 103.50. During the recent bounce, the USD index failed to hold above the 104.00 handle, losing further ground amid positive risk sentiment ahead of the holidays next week. After making some gains on Wednesday, the greenback keeps bleeding today, with risk sentiment staying upbeat across the financial markets. The index broke below a one-week-old ascending support line that turned into resistance around 103.90, paving the way towards the six-month low registered last week. EURUSD turned positive on Thursday after a short-lived and limited retreat during the previous session. The pair has settled above 1.0600, with the 1.0660 zone has been capping the ascent since late last week. The shared currency may need an extra impetus to overcome this barrier and get back to June lows seen last week around 1.0735.
The cable slipped on Wednesday to derive support from the 20-DMA that continues to act as the immediate support. Earlier in the week, the pair peaked around 1.2242 and has been retreating since then as traders opted to take some profit after the previous rally to the highest levels since June. The pound dipped below 1.2200 to settle between the 20- and the 200-DMAs. The pair is unlikely to see a more aggressive decline at this stage as the dollar lacks demand across the board. Now, the pound needs to regain the 1.2200 level in order to retain a bullish tone and resume the ascent. The daily RSI looks directionless in neutral territory, suggesting the cable could refrain from both bullish and bearish extension in the near term. GBPUSD was last seen changing hands around 1.2112, up 0.25% on the day. On the four-hour timeframes, the technical picture looks slightly negative as the RSI points marginally lower in neutral territory while the prices stay below the 20- and 100-SMAs.
Earlier in the week, the USDJPY pair plunged dramatically below the descending 20-DMA and the 200-DMA in the aftermath of the Bank of Japan meeting. The central bank announced it will modify its yield curve control band from its current plus and minus 0.25% to plus and minus 0.5%. The pair dipped from the 137.50 down to a late-July low of 130.56. Following the initial sell-off, the dollar bounced marginally on Wednesday. However, the downside momentum continues to persist, with the pair holding below the 132.00 mark today. In the immediate term, the greenback needs to regain this level in order to avoid another major retreat. Otherwise, the pair is likely to suffer fresh losses, with the 130.00 support zone coming into the market focus at this stage. USDJPY was last seen trading around 131.94, down 0.40% on the day.
The price of bitcoin struggles for direction these days as the recent jump above the $17,000 failed to attract more decisive buying pressure due to a still heightened uncertainty in the crypto space. The BTCUSD pair has settled around $16,800 on Thursday, trading nearly unchanged on the day. The latest rally helped push the coin from late-November lows registered around $16,300. Now, the largest cryptocurrency by market capitalization needs to hold above $16,500 in order to stay afloat and regain the $17,000 barrier eventually. A decisive break above this level on a daily/weekly closing basis would mark substantial improvement in the near-term technical picture for bitcoin. In a wider picture, the overall trend in the cryptocurrency market remains bearish, with BTC retreating further from all-time highs around $69,000 seen in November 2021. After a brief relief in October, the coin resumed the decline last month to notch one-year lows in the $15,500 zone.