USD/JPY now targets 115.50 – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group remains bullish on the pair, expecting it to advance towards the mid-115.00s in the next 1-3 week.

Key Quotes

“USD extended its rally as expected and the inability to move beyond the major 114.35 resistance was not surprising (high has been 114.29). While the recent strong upward momentum has waned considerably, it is too early to expect a sustained pullback. This pair is more likely to trade sideways at these higher levels, likely between 113.75 and 114.30”.

“The bullish phase in USD is entering its third week and the strong daily closing above 113.55 last Friday suggests that there is scope for a break above 114.35, the high back in May. We indicated last Thursday that in order for USD to maintain its bullish impetus, it has to ‘move and stay above 113.55’ and now that the condition is met, the odds for further USD strength appear to be quite high. From here, a break above 114.35 could lead to acceleration higher as the next significant resistance is much further up at 115.50 (high in March)”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD consolidates gains just above 0.7000

AUD/USD rebounds sharply and manages to reclaim the area beyond the 0.7000 threshold on Wednesday. Indeed, the pair sets aside two daily drops in a row and regains balance on the back of the marked pullback in the Greenback as investors keep assessing the results from the US Midterms elections.

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 pops to four-day highs near $4,050

Gold manages to regain some composure, leaving behind two consecutive daily pullbacks and reclaiming the area above the key $4,000 mark per troy ounce on Wednesday. The strong decline in the US Dollar, shrinking US Treasury yields across the curve and lower crude oil price all contributes to the yellow metal’s recovery.

Bitcoin and Gold Outlook: BTC tops $80K, XAU reclaims $4,000 as Democrats take control of Congress

Bitcoin (BTC) and Gold (XAU/USD) are gaining momentum on Wednesday, as bulls stage a comeback. BTC’s position above $80,000 signals a bullish turnaround, erasing sharp losses from the Binance hack, which impacted $6.3 billion. Meanwhile, Gold’s recovery above $4,000 could strengthen bullish sentiment after the United States (US) midterm elections.

US midterms 2026: Investor Q&A on the Democratic sweep

1. Gridlock replaces the stimulus narrative. A Democratic Congress would constrain Trump's ability to pursue additional fiscal expansion and legislative tax measures. But it cannot simply reverse the president's entire economic agenda. Executive powers, existing legislation and presidential vetoes remain important. 2. AI faces a higher hurdle, not an extinction event.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.