
USD/JPY, DXY Outlook: Hawkish Holds and Key Resistance Levels
USD/JPY and DXY face key resistance levels as markets weigh Fed and BOJ rate expectations, inflation and geopolitical developments
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USD/JPY and DXY face key resistance levels as markets weigh Fed and BOJ rate expectations, inflation and geopolitical developments

The U.S. Dollar Index is retesting its 2026 highs as Treasury yields climb, oil prices stay elevated, and December rate hike bets top 70%.

Short-term price action around the Japanese yen has started to show some relative improvement over recent sessions. This can be seen in the recent performance of USD/JPY, which has now recorded three consecutive daily declines in favor of the Japanese currency, resulting in a depreciation of roughly 0.35% over the period.

Recent sessions have been particularly challenging for silver prices in the short term. Selling pressure has intensified considerably, resulting in three consecutive losing sessions and pushing the metal to a decline of nearly 8.5% over this period.

The trading week continues to unfold and weakness around the euro has once again become increasingly evident in the short term. This can be seen in the recent performance of EUR/USD, which has declined roughly 0.3% over the last three trading sessions, highlighting renewed strength in the U.S. dollar.

The euro has started to face a more challenging period in the short term. The EUR/USD pair has already declined by nearly 0.81% over the last four trading sessions, a move that has begun to reinforce a meaningful bearish bias in favor of the U.S. dollar.

Gold, Silver, DXY Outlook: Charts test defining support levels as crude oil prices hold above $100, U.S. Treasury yields move higher and hawkish FOMC risks come into focus. Key scenarios to watch.

U.S. stocks are pointing to a lower open as oil prices breach $100 a barrel for the first time since July, amid deepening tensions in the Middle East. Investors also remain cautious ahead of inflation data later in the week.

Over recent trading sessions, a particularly relevant dynamic has begun to emerge around USD/MXN price action, as a growing phase of indecision and lack of clear direction becomes increasingly evident in the short term

USD/JPY and DXY Price Outlook: Key Scenarios to Watch Amid Rising Crude Oil Prices, Treasury Yields and Geopolitical Uncertainty

Gold's price action has changed notably during the week. Over the last four trading sessions, the precious metal has advanced only slightly more than 1%, highlighting a clear slowdown around the $4,600 per ounce area.

Ultimately, unless yields start to head lower, the pressure will likely remain on the US dollar, with currencies of countries with better fiscal discipline, like the Norwegian Krone and Swiss franc, likely to remain supported. This makes the USD/NOK our favourite currency to take advantage of the slump in the dollar.

As trading comes to a close this week, one of the most relevant themes across financial markets continues to be the strength displayed by gold in the short term. Over the last three trading sessions, the precious metal has gained nearly 7%, highlighting the return of a meaningful bullish bias within the market.
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