Crypto Industry News:
According to media reports, the rulers of the ruling party in Japan are working on a proposal to release a national digital currency, which seems to be a response to the fear of Chinese digital yuan.
The planned digital yen would be jointly developed by government and private companies and would be in line with many similar initiatives around the world.
A parliamentary group of 70 legislators from the Liberal Democratic Party is working on the proposal. The group plans to submit a proposal to the government in February.
The implementation of the digital yen will take some time due to the late start of Japan. The decision is a fundamental change for the country - representatives of the central bank did not see "demand" for the central currency of the central bank (CBDC) in December 2019.
Facebook Libra's announcement and the Chinese digital yuan forced central banks around the world to consider issuing their own CBDC. This was the main topic of discussion at the panel of the World Economic Forum on January 23.
However, each initiative aims to solve various problems. Libra is primarily offered as a global and trouble-free payment network, and the goal of the digital yuan is to increase China's financial strength, according to former Bank of Japan board member Takahide Kiuchi.
Japanese Finance Minister Taro Aso expressed concerns that the yuan would become a common accounting currency, which might have partly motivated the creation of the Japanese CBDC. However, Kiuchi believes that the main motivation for the Japanese CBDC is the exclusion from the use of cash. As a country that has already introduced negative interest rates, cash flow prevents this policy from expanding further.
Technical Market Overview:
The ETH/USD pair has bounced from the level of 50% of Fibonacci retacement after the low was made at the level of $154.32 and Bullish Engulfing candlestik pattern was made. So far the bulls have managed to test the short-term trendline form below, but no breakout occured just yet. If bulls will sucesfully break through this trendline, then the swing high located at the level of $178.12 might be tested soon. It is worth to keep an eye on the current developings on the Ethereum market, nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $196.61 is cleary broken.
Weekly Pivot Points:
WR3 - $187.66
WR2 - $177.62
WR1 - $172.55
Weekly Pivot - $163.44
WS1 - $158.80
WS2 - $148.63
WS3 - $143.46
Trading Recommendations:
There is a possibility that the wave 2 corrective cycles are completed at the level of $115.05, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation. This strategy is valid as long as the level of $146.94 is not violated. Nevertheless, the larger timeframe trend is still down and all the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend until the level of $196.61 is cleary broken.
