USD/JPY: Expected to edge higher to 157.15 – UOB Group

FXStreet Insights Team FXStreet

US Dollar (USD) is expected to edge higher to 157.15; based on the current momentum, any further advance is unlikely to reach 157.50. In the longer run, USD is likely to trade in a range between 155.60 and 157.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD is likely to trade in a range

24-HOUR VIEW: "USD traded in a choppy manner between 156.09 and 157.29 two days ago. Yesterday, we stated that 'the sharp but short-lived swings have resulted in a mixed outlook', and we were of the view that USD 'could continue to trade in a choppy manner, likely between 156.20 and 157.20'. However, USD traded within a narrower range than expected (156.14/156.79), closing modestly higher at 156.62 (+0.15%). Despite the relatively quiet price action, there has been a slight increase in upward momentum. Today, we expect USD to edge higher toward 157.15. Based on the current momentum, any further advance is unlikely to reach 157.50. Support is at 156.55, followed by 156.30."

1-3 WEEKS VIEW: "There is not much to add to our update from yesterday (06 Jan, spot at 156.70). As highlighted, USD 'is likely to trade in range for now, most likely between 155.60 and 157.50'."

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 hovers around 0.7050 as focus shifts to US GDP and PCE data

AUD/USD holds steady around mid-0.7000s in the Asian session on Thursday, trading just below the one-month high it touched the previous day, as November RBA rate hike bets continue to support the Australian Dollar. Meanwhile, the US Dollar reverses part of Wednesday's post-FOMC corrective slide and caps the currency pair as traders now look to US GDP and the PCE Price Index.

USD/JPY retakes 158.00 as USD stalls the post-FOMC corrective slide

USD/JPY attracts some dip-buyers during the Asian session on Thursday, climbing back above 158.00 as the US Dollar reverses part of the post-FOMC pullback from a two-week high. Bulls, however, await key US macro data – the Advance Q3 GDP and the PCE Price Index – before positioning for further gains. Focus will then shift to the crucial BoJ policy update on Friday amid firming expectations for a December rate hike.

Gold weakens below $4,050 amid renewed USD buying ahead of crucial US data

Gold slides back below $4,050 during the Asian session on Thursday, snapping a three-day winning streak. The US Dollar regains positive traction after Wednesday’s post-FOMC corrective slide as elevated energy prices keep December rate-hike bets firmly on the table. Moreover, geopolitical risks underpin the safe-haven buck, weighing on bullion as traders now look to crucial US data – the Advance Q3 GDP and the PCE Price Index.

Bitcoin volatility falls to 2023 lows, Glassnode says

Bitcoin climbed above $81,000 on Wednesday as the Federal Reserve (Fed) kept interest rates unchanged at 3.75%–4.00% in a 10–2 vote. The decision came as the top crypto's realized volatility fell to levels last seen in the summer of 2023.

Fed's recap: A cautious hold with a clear warning on inflation

The Federal Reserve (Fed) held its policy rate steady at 3.75%-4.00%, but it wasn’t a unanimous decision. Among two officials who wanted a 25-basis-point hike were Lisa Cook and Beth Hammack, while Chair Kevin Warsh said the Fed would use the coming flow of information to decide whether further action is needed. The statement presented a resilient economy.

Anthropic pledged $270 billion to Amazon, Google, and Microsoft. Here's who actually gets paid

Anthropic owes Amazon, Google, and Microsoft at least $269.4 billion for computing power, even if it uses less. All three sell its models and handle its billing, and Amazon and Google own stakes and lend it money, so they get paid regardless of how the IPO goes. The Dario Amodei-led Anthropic filed its initial public offering (IPO) on Monday, seeking a listing on the Nasdaq under the ticker ANT.