Japanese yen weakness captures traders attention
The Japanese yen currency came under heavy downside pressure this week, as risk-on trading sentiment and continued weakness in Japan’s economy provoked a major sell-off in the Asian currency. The USDJPY pair surged to a new 2020 trading high, following a major technical breakout above the 110.30 level. Fears about the affect of the coronavirus on the countries growth prospects caused traders to sell the Japanese currency. Improved risk-on trading sentiment and rising equity markets also caused traders to move away from the yen, and move into the US dollar, equities, and gold.
- The USDJPY pair is only bullish while trading above the 110.30 level, key resistance is found at the 112.38 and 113.00 levels.
- If the USDJPY pair trades below the 110.30 level, key support is located at the 109.70 and 108.90 levels.
The cryptocurrency market came under pressure this week as traders booked profits from already overstretched levels. Bitcoin and a number of top altcoins performed a much-needed technical correction after weeks of strong upside gains. Bitcoin bulls failed to make a new weekly high, signaling to traders that buying demand above the $10,000 was starting to dry up. The BTCUSD pair slipped back towards the $9,000 level, after meeting strong resistance from the $10,300 level. Ethereum and Litecoin also turned lower, after both cryptocurrencies failed to make new weekly and monthly trading highs.
- The BTCUSD pair is only bullish while trading above the $9,700 level, key resistance is found at the $10,500 and $10,900 levels.
- The BTCUSD pair is only bearish while trading below the $9,700 level, key support is located at the $9,000 and $8,500 levels.
The Australian dollar fell to its weakest level since 2009 against the US dollar this week, following the release of weaker-than-expected monthly jobs figures. The AUDUSD pair tumbled towards the 0.6600 level, as Australia’s highly-antcipated monthly jobs report missed expectations. The RBA Meeting Minutes also signaled that Australia policy makers want interest rates to be kept at extremely low levels. Investors also feared that the coronavirus will have an extremely negative impact on the Australian economy.
- The AUDUSD pair is only bearish while trading below the 0.6770 level, key support is found at the 0.6580 and 0.6500 levels.
- If the AUDUSD pair trades above the 0.6770 level, buyers may test towards the 0.6810 and 0.6950 resistance levels.
Gold and silver both enjoyed strong buying interest this week, as traders and investors turned increasingly bullish towards metals. Gold rallied to its highest trading level since April 2013, with the yellow-metal firming above the important $1,600 level. Silver prices traded in lockstep with gold, as the popular metal rallied closer to the best levels of the year so far. Analysts speculated that ongoing ultra-loose central bank monetary policy is causing traders to buy gold and silver.
- The XAUUSD pair is only bearish while trading below the $1,574 level, key support is found at the $1,544 and $1,480 levels.
- If the XAUUSD pair trades above the $1,574 level, buyers may test towards the $1,620 and $1,680 resistance levels.