USD/JPY outlook: USD/JPY extends steep descend into third straight day and breaks key support

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY remains in a steep fall for the third consecutive day (down almost 4%) with speculations that intervention may be behind the move, along with increased safe-haven demand and month-end flows.

Fresh extension lower on Tuesday broke through significant supports at 153.62 (the base of thick ascending daily Ichimoku cloud / 100 DMA) and cracked Fibo 50% retracement of 146.58/159.45 upleg (153.01).

Daily technical studies show strong negative momentum and MAs above the price and turning south that supports current action.

Broken cloud base/100 DMA reverted to significant resistance which should ideally cap and keep fresh bears in play for firm break of 153.01 that would expose targets at 151.50 (Fibo 61.8%) and 150.20/00 (bull-trendline / psychological) in extension.

Res: 153.62; 154.00; 154.53; 155.61.
Sup: 152.15; 151.50; 150.20; 150.00.

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD remains firm, targets 1.2000

EUR/USD carried over Monday’s momentum, pushing up toward the proximity of the key 1.2000 area, a level not seen since June 2021. The ongoing leg higher reflects continued selling pressure on the US Dollar, with the broader risk backdrop still supportive and investors once again zeroing in on tariff-related risks coming out of the White House.

GBP/USD pushes harder, targets 1.3800

GBP/USD is pushing to fresh multi-month highs, approaching the 1.3800 mark, with broad-based US Dollar weakness firmly in control on Tuesday. The Greenback remains under pressure after fresh headlines suggested President Trump has reignited the trade war, denting confidence in the currency ahead of the Federal Reserve’s policy decision.

Gold recedes from tops, back to the $5,050 zone

Gold remains firmly bid on Tuesday despite giving away some of its earlier gains and edge back toward the $5,050 region per troy ounce. The precious metal continues to find support from a struggling US Dollar, alongside persistent uncertainty surrounding trade policy and broader geopolitical risks.