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USD/JPY: Below 154.65, a sustained decline is possible – UOB Group

US Dollar (USD) could edge higher, but momentum does not appear to be strong enough to break clearly above 156.20. In the longer run, for a sustained decline, USD must first close below 154.65.

🔗 Source

💡 DMK Insight

The USD’s struggle at 156.20 signals a critical moment for traders: Right now, the dollar’s inability to gain traction above this level suggests a lack of bullish momentum. If it can’t break through, we might see a pullback, especially with 154.65 as a key support level. A close below that could trigger a more significant decline, impacting not just USD but also correlated assets like commodities and emerging market currencies. Traders should keep an eye on these levels, as they could dictate short-term strategies. On the flip side, if the USD does manage to break above 156.20, it could lead to a quick rally, so be ready for volatility. Watch for any economic data releases that might influence market sentiment, as these could provide the catalyst needed for a breakout or breakdown.

📮 Takeaway

Monitor the USD closely around 156.20 and 154.65; a close below 154.65 could signal a significant decline.

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