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HomeFinance NewsUSD/JPY Encounters Resistance, While EUR/USD & GBP/USD Decline

USD/JPY Encounters Resistance, While EUR/USD & GBP/USD Decline

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The US dollar, measured by the DXY index, experienced a surge due to higher U.S. Treasury yields. The boost was fueled by strong economic numbers and hawkish Federal Reserve rhetoric. The favorable data included the revelation that U.S. employers added 353,000 jobs in January, nearly double the consensus estimates. Additionally, the January ISM services PMI accelerated to 53.4 from the previous 50.5, surpassing the expected 52.00.

FOMC Chairman Jerome Powell’s remarks further supported the greenback, indicating that the central bank was unlikely to reduce borrowing costs in March, as premature action could lead to inflation settling above the 2.0% target. This resilience in the U.S. economy and potential delay of the easing cycle may lead to further increases in yields in the near term before pivoting to the downside later in the year, which could provide a favorable backdrop for the U.S. dollar. These factors have contributed to the bullish sentiment surrounding the U.S. dollar, painting a positive outlook for the currency’s performance in the near future.

In technical analysis, the USD/JPY pair pushed higher, with the bulls firmly in control and the potential for further rallies towards key obstacles at 148.90 and 150.00. Conversely, in the event of a pullback, support levels are identified at 148.35 and 147.40. Additionally, the article touches on the technical analysis of the EUR/USD pair, noting a plummeting trend and potential levels of resistance and support. It also provides insights into the GBP/USD pair’s technical chart, detailing potential levels of support and resistance in the event of a comeback or further losses. These technical analyses offer valuable insights for traders and investors in the forex market.

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