<p style=““ class=“text-align-justify“>The dollar was <a target=“_blank“ href=“https://www.forexlive.com/news/dollar-slightly-on-the-weaker-side-to-start-the-new-week-20230116/“ target=“_blank“ rel=“follow“>slightly softer initially</a> and then <a target=“_blank“ href=“https://www.forexlive.com/news/dollar-recovers-some-poise-on-the-day-20230116/“ target=“_blank“ rel=“follow“>was bid to start the session</a> but all the flurry is dying down now and markets are keeping more settled. On the balance of things, the greenback is little changed with USD/JPY being arguably the only notable mover with the pair up 0.3% to 128.20-30 levels currently but off its earlier high of 128.86:</p><p style=““ class=“text-align-justify“>Other dollar pairs have also retreated from their earlier range extremes and are keeping little changed mostly. EUR/USD is flattish around 1.0825, off its earlier low of 1.0801. GBP/USD is down 0.2% to 1.2200 but off its earlier low of 1.2170. Meanwhile, AUD/USD is down 0.1% to 0.6965 and also off its earlier low of 0.6940.</p><p style=““ class=“text-align-justify“>Elsewhere, European indices are also holding just a touch higher, with gains around 0.2% to 0.3% mostly. The US stock market may be closed today but S&P 500 futures are down 0.3% but also off earlier lows seen in early European morning trade. The technical picture is one to watch this week as highlighted earlier <a target=“_blank“ href=“https://www.forexlive.com/news/eurostoxx-futures-03-in-early-european-trading-20230116/“ target=“_blank“ rel=“follow“>here</a>.</p><p style=““ class=“text-align-justify“>To summarise, the dollar bid earlier has faded and broader markets are keeping little changed amid a lack of key drivers to start the new week.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>Knock, knock. Is anyone still there at the BOJ office? 10-year JGB yields are rising up to 0.52% and pushing the boundaries of the upper limit set out via last month’s policy tweak i.e. 0.50% currently. Be reminded that the central bank bought roughly ¥5 trillion of bonds on Friday – its largest daily operation on record – and also stepped in with another ¥1.3 trillion worth of purchases today.</p><p style=““ class=“text-align-justify“>Is the market pressure enough to force another adjustment by the BOJ? That will certainly be one to watch this week. I shared some thoughts earlier <a target=“_blank“ href=“https://www.forexlive.com/news/the-risks-are-skewed-towards-disappointment-for-yen-bulls-this-week-20230116/“ target=“_blank“ rel=“follow“>here</a>.</p>

This article was written by Justin Low at www.forexlive.com.

<p style=““ class=“text-align-justify“>This, according to the latest survey by the World Economic Forum (WEF) as they set out the backdrop ahead of their annual meeting in Davos. Some 18% of respondents also considered that a recession would be „extremely likely“ – more than twice as many as compared to the previous survey conducted in September last year.</p><p style=““ class=“text-align-justify“>Some other findings from the survey:</p><ul><li style=““ class=“text-align-justify“>9/10 respondents expect both weak demand and high borrowing costs to weigh on firms</li><li style=““ class=“text-align-justify“>This should lead to cost-cutting and reduction of operational expenses via layoffs</li><li style=““ class=“text-align-justify“>Supply chain disruptions not expected to cause a significant drag this year</li><li style=““ class=“text-align-justify“>Cost-of-living crisis may be nearing its peak, with 68% of respondents expecting it to become less severe by the end of 2023</li></ul>

This article was written by Justin Low at www.forexlive.com.

<p class=“MsoNormal“>The market keeps on maintaining a positive mood as the recent economic
data were interpreted as good news given the strength in labour market and the easing
in price pressures. </p><p class=“MsoNormal“><a target=“_blank“ href=“https://www.forexlive.com/centralbank/powell-we-need-to-stick-to-our-mandate-20230110/“ target=“_blank“ rel=“nofollow“>Fed
Chair Powell</a> didn’t touch on monetary policy or recent set of
data, removing a risk for the market and giving it more confidence to keep
rallying. </p><p class=“MsoNormal“>We are at a crossroads. </p><p class=“MsoNormal“>On one hand, there’s the risk that the market
is underestimating the Fed’s resolve and the impact that it will have on
the economy. </p><p class=“MsoNormal“>On the other hand, the market is trading on the beliefs that the
recession will be mild, and the Fed will achieve a soft landing. </p><p class=“MsoNormal“>Given
the uncertainty, the technical here can be a guide.</p><p class=“MsoNormal“>S&P500 Technical
Analysis</p><p>On
the daily chart above, we can see that the price is now testing the major
downward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“ target=“_blank“ rel=“nofollow“>trendline</a> that defined the 2022 bear market. </p><p>The price was stuck in a range during the
Christmas holidays, but the NFP and ISM Services PMI gave the market the boost
needed to break out of the range and rallying towards the trendline. </p><p>The
bulls need a clear upside breakout to target the major <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistances</a> at 4175 and 4324. </p><p>Another fakeout and a fall below the 3900
level, will give the bears the confidence to target the October 2022 low at
3506.</p><p class=“MsoNormal“>Looking at the 1-hour chart, we can see the recent
catalysts that pushed the market to the upside. </p><p class=“MsoNormal“>The beat in <a target=“_blank“ href=“https://www.forexlive.com/news/us-december-non-farm-payrolls-223k-vs-200k-expected-20230106/“ target=“_blank“ rel=“nofollow“>NFP</a> and the
miss in <a target=“_blank“ href=“https://www.forexlive.com/news/us-december-non-farm-payrolls-223k-vs-200k-expected-20230106/“ target=“_blank“ rel=“nofollow“>AHE</a> and <a target=“_blank“ href=“https://www.forexlive.com/news/ism-december-us-services-496-vs-550-expected-20230106/“ target=“_blank“ rel=“nofollow“>ISM
Services PMI</a>, ignited a strong move to the upside. </p><p class=“MsoNormal“>Once the
market breached the resistance zone at 3920-3940, it pulled back waiting for
Fed Chair Powell. </p><p class=“MsoNormal“>As that risk was removed, the market started rallying again
targeting the blue trendline. </p><p class=“MsoCaption“>Zooming
in to the 15 minutes chart, we can see the hard time that the bulls are
having breaking to the upside. </p><p class=“MsoCaption“>The price may even consolidate here waiting
for another catalyst. </p><p class=“MsoCaption“>The levels are defined though: </p><ul><li>If
the price stays above the 4022 level the bulls are in control.</li><li>If
the price falls back into the range, it would be in no man’s land.</li><li>If the price falls below
3962 level, the bears will regain control.</li></ul>

This article was written by ForexLive at www.forexlive.com.

<p class=“MsoNormal“>The bitcoin price has surpassed $21K,
adding around 23% over the week. Ethereum jumped 20% to $1570. Other leading
altcoins in the top 10 gained between 9% (BNB) and 50% (Solana). Solana has
re-entered the top 10, pushing Polygon aside.</p><p class=“MsoNormal“>The total capitalisation of the crypto
market, according to CoinMarketCap, rose 18.4% over the week, once again
approaching $1 trillion. </p><p class=“MsoNormal“>It’s easy to see that Bitcoin was
outperforming this time, which can easily be attributed to the positivity of
the stock market last week. </p><p class=“MsoNormal“>The first cryptocurrency also responded
very well to technical signals. Since securing above the 50-day average on
January 4, bitcoin has been closing all days with gains. A consolidation above
the previous local high and a break of the downtrend resistance caused an
acceleration in growth. BTCUSD closed above the 200-day average on Friday, contributing
to the weekend’s positive momentum.</p><p class=“MsoNormal“>Trading near the $21K level brought quotes
back to the area before the FTX crash, and this is a new test of the local
highs. Traders might want to be prepared that the market will need a short-term
correction towards $19.5K before we see another momentum, as locally, Bitcoin
looks overheated.</p><p>News background</p><p class=“MsoNormal“>The US Securities and Exchange Commission
(SEC) has charged cryptocurrency exchange Gemini and crypto lending service
Genesis with selling unregistered securities.</p><p class=“MsoNormal“>Crypto lending platform Nexo recorded a
significant outflow of customer funds amid reports of searches at its Bulgarian
office as part of an investigation into potential AML policy violations.
Authorities have accused the crypto bank of money laundering, tax
irregularities, fraud and providing banking services without a licence.</p><p class=“MsoNormal“>The Republican Party, which won a majority
in the lower house of the US Congress late last year, has begun forming a
subcommittee to regulate cryptocurrencies.</p><p class=“MsoNormal“>The new CEO of cryptocurrency hardware
vendor Trezor, Matej Zak, said the financial independence that bitcoin brings
is far more important than its market value. He said there will be a
consolidation of the crypto market in 2023 and then a bullish trend, which
Trezor plans to prepare for.</p><p>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ rel=“follow“ target=“_blank“ class=“article-link“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>

This article was written by FxPro FXPro at www.forexlive.com.