USD/JPY: A decline to 146.00 seems probable – UOB

In the opinion of UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia, USD/JPY could lose further ground and revisit the 146.00 zone in the next few weeks.

Key Quotes

24-hour view: We expected USD to drop to 146.00 yesterday. Our expectation did not materialise as USD dropped to 146.21 and then rebounded strongly to 147.48. Downward pressure has eased with the rebound. Today, USD is likely to trade in a range, probably between 146.50 and 147.60.

Next 1-3 weeks: Yesterday (04 Dec), when USD was trading at 146.50, we indicated that the recent USD weakness has resumed. We also indicated that if USD “breaks below 146.00, the focus will shift to 145.05.” USD then dropped to 146.21 and rebounded. We continue to hold the same view for now. Overall, only a breach of 148.10 (no change in ‘strong resistance’ level) would suggest that USD is not ready to break below 146.00.

GBP/USD clings to gains near 1.3460

GBP/USD holds steady above 1.3450 on Monday but struggles to build bullish momentum. Markets continue to assess developments in the US-Iran conflict following the weekend hostilities, helping the Greenback remain resilient against its rivals. Attention will turn to the UK employment report on Tuesday.

EUR/USD drops to three-day lows; focus is on 1.1400

EUR/USD trades on the back foot for the third day in a row and approaches the key 1.1400 contention zone on Monday. The pair’s pullback comes amid persistent uncertainty surrounding the Middle East crisis and decent gains in the US Dollar. Later this week, attention will turn to the ECB’s interest rate decision.

Gold challenges $4,000 amid a modest decline

Gold comes under some mild downside pressure and trades just above the key $4,000 mark per troy ounce at the beginning of the week. Escalating military action in the Middle East provides some support to the safe-haven metal, although expectations of higher US interest rates bolster the US Dollar and keeps its under the microscope.

Ethereum remains fragile underneath the surface despite outperformance

Ethereum's outperformance over the past week shows it's gaining relative strength against other top cryptocurrencies, but under the surface, key metrics indicate its rise remains fragile. Between last week and Wednesday, ETH recorded double-digit gains, outperforming fellow crypto majors Bitcoin, XRP, and Solana, before the broader market began to correct on Thursday.

Ripple Price: XRP bears retail control despite increasing retail demand

Ripple (XRP) faces sustained selling pressure as bears maintain control on Monday. The remittance token has struggled to break above the $1.10 resistance since last Thursday, as risk sentiment weighs. Demand for XRP derivatives has gradually increased since last week, with the perpetual futures Open Interest (OI) averaging 2.4 billion XRP on Monday, up from 2.13 billion XRP the previous day.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.