USD/JPY: Unlikely to break above 158.00 – UOB Group

FXStreet Insights Team FXStreet

The US Dollar (USD) could rebound further; overbought conditions suggest any advance is unlikely to break above 158.00. Nonetheless, a breach of 158.50 would suggest that the weakness in USD has stabilized, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

A break above 158.50 to signal USD stabilization

24-HOUR VIEW: “Our view for USD to decline further yesterday was incorrect. Instead of declining, USD rebounded strongly, closing on a firm note at 157.37 (+0.77%). While USD could rebound further today, overbought conditions suggest any advance is unlikely to break above 158.00. Support is at 156.90, followed by 156.30.”

1-3 WEEKS VIEW: “Last Friday (12 Jul, spot at 159.00), we highlighted that 'there is scope for JPY to continue to weaken, but it is too early to determine if the significant support level at 155.50 will come into view.' After USD broke below 155.50, we highlighted yesterday that 'the risk is for further USD weakness, and the level to watch is 154.50, followed by 153.95.' We did not expect the strong rebound and the subsequent firm daily close at 157.37 (+0.77%). From here, a breach of 158.50 (no change in ‘strong resistance’ level) would suggest that the weakness in USD has stabilized.”

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 comes under pressure near 1.1700

EUR/USD is paring back part of its earlier gains, easing towards the 1.1700 area as the US Dollar stages a modest rebound. The Greenback is finding some support as markets continue to digest President Trump’s speech at the World Economic Forum in Davos.

GBP/USD looks vacillating around 1.3430

GBP/USD is alternating gains with losses midweek, pushing back towards the 1.3430 area after bottoming out near the 1.3400 support. The modest recovery in Cable comes as the US Dollar advances modestly following President Trump’s comments at the World Economic Forum.

Gold corrects sharply lower, bulls retain control

Gold pushed its rally further on Wednesday, hitting a fresh all-time high near $4,900 per troy ounce earlier in the session. Risk appetite remains fragile, with investors staying cautious after President Trump delivered his speech in Davos, while EU–US tensions over the Greenland issue continue to simmer.

Crypto Today: Bitcoin, Ethereum, XRP stabilize despite weakening institutional, retail demand

Bitcoin holds below $90,000 on Wednesday, weighed down by weakening institutional and retail demand. Ethereum defends $2,900 support amid resumption of spot ETF withdrawals. XRP holds above $1.90 as US-listed spot ETFs record the second outflow since launch.

US President Trump at WEF in Davos: No nation can secure Greenland other than US

US President Donald Trump delivers a keynote speech at the World Economic Forum (WEF) held in Davos. "Certain places in Europe not recognizable any more."

Monero risks extending correction as market structure weakens

Monero (XMR) is extending its downtrend, below the $500 level at the time of writing on Wednesday, as sellers remain dominant during the American session. XMR has declined by approximately 38% from a recent high of $800, reached last Wednesday.