USD/JPY: Resistance at 160.00 is likely out of reach for now – UOB Group

FXStreet Insights Team FXStreet

Strong momentum indicates further US Dollar (USD) strength; the significant resistance at 160.00 is likely out of reach for now. In the longer run, strong USD rally has scope to extend, potentially breaking above 160.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Strong USD rally has scope to extend

24-HOUR VIEW: "While we indicated yesterday that 'there is scope for USD to rise further', we were of the view that 'any advance is likely part of a 157.60/158.40 range' We stated that USD 'is unlikely to break clearly above 158.40'. We were correct on the first count, but not the second. USD broke above 158.40 and surged, reaching a high of 159.19. Strong momentum indicates further USD strength, but the deeply overbought conditions suggest a slower pace of advance, and the significant resistance at 160.00 is likely out of reach for now. Note that there is a minor resistance at 159.60. On the downside, support levels are at 158.80 and 158.50."

1-3 WEEKS VIEW: "We turned positive on USD two days ago (12 Jan, spot at 158.00), pointing out that 'with rapidly increasing upward momentum, USD is likely to continue to rise'. We also pointed out that 'the level to watch is last year’s high, near 158.90'. Our view was validated as USD rose to a high of 159.19 yesterday. Despite the deeply overbought short-term conditions, the strong USD rally has scope to extend, potentially breaking above the round-number resistance of 160.00. Overall, only a breach of 157.70 (‘strong support’ level previously at 157.00) would indicate that the current strong upward pressure has eased."

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.

EUR/USD hovers around 1.1650 as RSI signals fading momentum

EUR/USD moves little after registering modest losses in the previous session, trading around 1.1650 during the Asian hours on Wednesday. The 14-day Relative Strength Index momentum indicator, currently at 40 (below the 50 midline), signals weak momentum without indicating oversold conditions.

GBP/USD trades higher ahead of key UK GDP data

The Pound Sterling gains against its major peers, except antipodeans, on Wednesday. The British currency trades higher ahead of the United Kingdom monthly Gross Domestic Product and factory data, which will be released on Thursday.

Gold stays near all-time highs near $4,650 as safe-haven demand rise

Gold reaches the fresh record high of $4,639.77 during the Asian hours on Wednesday. Precious metals, including Gold, attract buyers amid growing bets on Federal Reserve rate cuts following the softer inflation in the United States. US inflation data for December signaled easing underlying US inflation, strengthening views that price pressures are gradually cooling.

US Retail Sales expected to arrive moderately higher on Wednesday

The United States Census Bureau will publish November Retail Sales on Wednesday. The delayed data is expected to show that sales rose a modest 0.4% in the month, following no change in October. The figure is relevant as it corresponds most closely with the consumer spending component of Gross Domestic Product.

US economic outlook: January 2026

Jerome Powell's eight-year tenure as Chair of the Federal Reserve is coming to a close during a period of intense pressure on the US central bank and divided views among policymakers about the appropriate stance of monetary policy.

Meme Coins Price Prediction: DOGE, SHIB, and PEPE rally, catching Bitcoin's second wind

Meme coins such as Dogecoin, Shiba Inu, and Pepe recorded gains of 7% to 14% on Tuesday, signaling a potential reversal to the upside. DOGE and SHIB hold steady after the bounce back while the frog-themed PEPE extends gains, signaling further upside potential.