Japanese Yen: Gains seen while below 160.00 against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann describe USD/JPY price action as muted, with the pair confined to 157.15–157.95 and momentum turning flat. They expect intraday range trading between 157.00 and 158.30. Over the next 1–3 weeks, the risk remains to the downside toward 155.00 and 154.10, provided the strong resistance at 160.00 is not breached, despite some slowing in downward momentum.

Range trade but focus on lower levels

"24-HOUR VIEW: Following USD’s price action on Monday, we stated yesterday that “the sharp swings have resulted in a mixed outlook.” We also stated that USD “could trade between 156.20 and 158.50.” We did not expect muted price action as USD traded within a relatively tight range between 157.15 and 157.95. Momentum indicators are turning flat, and today, USD could trade between 157.00 and 158.30."

"1-3 WEEKS VIEW: In our most recent narrative from Monday (03 Aug, spot at 156.20), we highlighted that “the risk for USD remains firmly on the downside, and the levels to watch are 155.00 and 154.10.” Although USD fell briefly to 155.21, it has since rebounded, and downward momentum has slowed somewhat. That said, we will continue to hold the same view as long as the ‘strong resistance’ at 160.00 (no change in level) is not breached."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD flatlines near 0.6965 as less hawkish RBA counters USD weakness

AUD/USD holds steady above a two-week low, trading near 0.6965 in the Asian session on Wednesday as early midterm election results heighten political uncertainty and weigh heavily on the US Dollar. Moreover, reviving safe-haven demand triggers a fresh leg down in US bond yields, offsetting Fed hike bets and exerting additional pressure on the buck. However, a less hawkish RBA caps the Aussie.

USD/JPY declines below 158.00 as USD weakens on midterm election results

USD/JPY comes under heavy selling pressure on Wednesday, dropping below 158.00 during the Asian session as the US Dollar slumps to a one-month low amid heightened political uncertainty after early US midterm vote counts. Moreover, the prospect of gridlock in Washington drives safe-haven flows, triggering a fresh leg down in US bond yields and further weighing on the buck.

Gold ticks lower while early trend points to Democrats victory in House

Gold trades with caution at around $3,930 in the Asian trading session on Wednesday. The precious metal struggles to gain direction as investors shift their focus to United States Midterm elections where early trend shows that Democrats would have a clear majority in House of Representatives.

Bitcoin tests critical support, Ethereum struggles below resistance, XRP extends losses

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) remain under pressure on Wednesday as bearish momentum continues to weigh on prices. BTC approaches key support around $76,466, and a decisive close below could open the door to deeper losses. Meanwhile, ETH struggles below key resistance while XRP faces rejection at the upper trendline of a falling channel pattern, all hinting at deeper losses.

US Dollar falls below 101.50 as early midterm results point to Democratic gains

US Dollar Index faces some selling pressure near 101.30 during the early Asian session on Wednesday. Traders will closely monitor the US midterm election outcomes later in the day for fresh impetus. Yields fell across the curve, with the 2-year treasury yields dropped five basis points to 4.566%. Benchmark 10-year yields were down six bps to 4.90%.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.