USD/JPY seems to have now moved into a consolidative phase – UOB

Pablo Piovano FXStreet

USD/JPY now seems to face a 146.50-148.50 range in the short-term horizon, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: Yesterday, we held the view that USD “could edge higher, but it is unlikely to threaten the major resistance at 149.00.” USD then eked out a fresh high of 148.45 before plummeting to end the day lower by 0.51% (147.58). While the sharp drop appears to be overdone, there is room for USD to test 147.15 before stabilisation is likely. The major support at 146.50 is unlikely to come into view. Resistance is at 147.90, followed by 148.20.

Next 1-3 weeks: On Monday (18 Sep, spot at 147.80), we highlighted that “upward momentum has increased slightly, and USD could edge higher to 148.40, but the likelihood of a sustained rise above this level is not high.” Yesterday (21 Sep, spot at 148.30), we highlighted that USD “Upward momentum has increased further, and USD has room to rise to 149.00.” USD then rose and eked out a fresh high of 148.45 before plummeting below our ‘strong support’ level of 147.45 (low has been 147.31). The breach of our ‘strong support’ level indicates that upward pressure has faded. For the time being, USD is likely to trade in a range, probably between 146.50 and 148.50.

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 stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold flirts with $4,000 on solid USD buying

Gold slips back to the proximity of the key $4,000 mark per troy ounce on Tuesday, reaching new four-day lows at the same time. The yellow metal’s severe retracement follows the firm performance of the US Dollar, rising US Treasury yields across the curve and reignited speculation of extra Fed tightening.

Pi Network rebounds from record lows, exits oversold territory as momentum improves

Pi Network (PI) shows a strong recovery on Tuesday, up over 7% after recording its all-time low of $0.0624 the previous day. PI token’s appeal in the derivatives market shows minor improvement, with Open Interest rising to $6.21 million.

Five risks for the global economy in 2027

From AI bubbles to geopolitical breakthroughs, these are some of the five ways why this outlook could go wrong – or right: A severe correction in US stocks triggered by an AI meltdown, second-round inflation effects emerge at scale or geopolitical de-escalation delivers an energy peace dividend.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.