Ripple’s recent warning about the RLUSD stablecoin has added to concerns surrounding its volatility ahead of launch. The company’s pre-launch bids have skyrocketed, signaling potential risk factors that investors must carefully consider. Meanwhile, in the foreign exchange markets, EUR/JPY and USD/JPY continue their upward trajectories, with key resistance levels in sight, while AUD/USD drops to its lowest levels in 13 months.
EUR/JPY has continued its ascent, recently reaching the 55-day simple moving average (SMA) at ¥162.47. This level aligns with expectations, setting the stage for the pair to challenge the next resistance zone, which spans from ¥163.60 to ¥163.89. This area is crucial for the future direction of the pair, as a break above it could lead to further gains.
On the downside, Wednesday’s high of ¥160.70 serves as minor support, providing a cushion for any potential pullbacks. Traders will closely monitor this level to gauge whether the upward momentum can continue or if a reversal is in store.
USD/JPY has extended its rally, marking its seventh consecutive day of gains and pushing toward the ¥154.71 high reached on November 7. The pair’s strong upward movement shows little sign of slowing, supported by favorable economic conditions in the United States. A key level to watch for traders is the 200-day simple moving average (SMA) at ¥152.09, which has proven to be a significant support point. Further down, the high from December 4 at ¥151.23 provides an additional support level.
As long as USD/JPY holds above these critical support levels, the outlook remains bullish, with the potential for further gains toward the November high.
In stark contrast to the strength seen in EUR/JPY and USD/JPY, AUD/USD is struggling, hovering near its 13-month low at $0.6337. This represents a significant dip from recent highs, as the Australian dollar faces mounting pressure against the US dollar. Below this level, the October 2023 low at $0.6271 becomes the next critical support area, a level that traders will watch closely for any signs of stabilization.
To the upside, minor resistance is seen at Thursday’s high of $0.6429, with further resistance along the October-to-December downtrend line at $0.6435. The persistence of these bearish trends in AUD/USD suggests that the Australian currency could face more challenges, especially if broader economic conditions continue to favor the US dollar.
The forex markets are experiencing notable movements across various pairs. While EUR/JPY and USD/JPY show strength and progress toward resistance levels, AUD/USD continues its decline, struggling near its 13-month lows. In the backdrop, Ripple’s cautionary statement regarding the RLUSD stablecoin highlights potential volatility, adding uncertainty to the broader financial landscape. Investors must remain vigilant as these developments unfold.
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