USD/JPY: Any advance is likely part of a higher range of 149.20/150.15 – UOB Group

FXStreet Insights Team FXStreet

Further US Dollar (USD) strength is not ruled out, but any advance is likely part of a higher range of 149.20/150.15. In the longer run, USD could rise further to 150.15, with lesser odds of reaching 150.90, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD might rise further to 150.15

24-HOUR VIEW: "Yesterday, we expected USD to 'trade in a range between 148.20 and 149.15.' However, instead of trading in a range, USD surged, reaching a high of 149.92. Further USD strength is not ruled out. However, with negative divergence forming, combined with deeply overbought conditions, suggest that any advance is likely part of a higher range of 149.20/150.15."

1-3 WEEKS VIEW: "After USD rose to a high of 148.91 two days ago, we highlighted yesterday that 'while the renewed upward momentum suggests USD could reach 149.15, it is currently unclear whether it could continue to rise toward the next major resistance at 149.55.' We did not expect USD to then surpass both levels, as it surged to a high of 149.92. The sharp rally over the past couple of days appears excessive, but with no sign of slowing just yet, USD could rise further to 150.15, with lesser odds of reaching the major resistance at 150.90. To sustain the overbought momentum, USD must hold above the ‘strong support’ at 148.50 (level was at 147.70 yesterday)."

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 meets fresh supply and tests 0.7100 amid weak Australian PMIs

AUD/USD has come under fresh selling pressure and is testing 0.7100 in the Asian session on Wednesday. Australia's flash PMIs showed manufacturing slipped into contraction and services expanding slowly for a second straight month, renewing the pair's downside. Furthermore, a bullish US Dollar acts as a headwind for the pair as traders keenly await the crucial Trump-Xi summit on Thursday. Meanwhile, markets shrug off US-Iran indirect talks.

USD/JPY stands firm near mid-157.00s, close to two-week high

USD/JPY hovers around mid-157.00s in the Asian session on Wednesday, near two-week highs touched last Friday as the BoJ's dovish rate hike continues to undermine the Japanese Yen. Meanwhile, the US Dollar remains firm amid the Fed's hawkish stance, adding support to the pair, though JPY intervention fears cap further gains. Markets pay little heed to the completion of the round of US-Iran indirect talks ahead of Trump-Xi meeting.

Gold sticks to losses below $4,350 as USD buying remains unabated amid hawkish Fed

Gold struggles to capitalize on the previous day's goodish rebound from sub-$4,300 levels and meets with fresh supply during the Asian session. The US Dollar extends its recent uptrend, hitting a fresh high since July 30 amid the Federal Reserve's hawkish outlook. This, in turn, is seen as a key factor undermining the non-yielding bullion.

Cardano Bulls push higher as open interest, funding rates rise

Cardano (ADA) extends gains, trading above $0.262 after rallying more than 14% so far this week. The bullish momentum is supported by rising Open Interest (OI), positive funding rates and signs of whale accumulation. If buying pressure persists, ADA could extend its rally and target higher levels. Cardano’s derivatives metrics show strengthening conditions.

Trump meets Xi: Why markets are watching this summit so closely

United States President Donald Trump and Chinese President Xi Jinping are set to meet in Washington on Thursday for a summit closely watched by markets. After several months of easing trade tensions between the US and China, the meeting could determine whether the world's two largest economies extend their truce or enter a new period of uncertainty.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.