USDJPY keeps oscillating around the 134.00 figure, refraining from a more robust ascent after peaking at fresh twenty-year highs
The USD index fell back from twenty-year highs seen around 105.30 at the start of the week. The greenback has settled below 105.00 as risk sentiment started to improve, with traders taking profit after rally. Still, the downside potential for the dollar looks limited ahead of the Fed’s meeting that concludes on Wednesday. The euro bounced on Tuesday as risk environment has improved somewhat after a massive sell-off witnessed at the start of the week. EURUSD dipped to one-month lows below 1.0400 early on Tuesday before recovering some of the losses. However, the pair failed to regain the 1.0500 mark, suggesting the prices could resume the decline after a pause, with bearish risks persisting in the near term. The shared currency is likely to retest long-term lows seen around 1.0350 last month as the US dollar could continue the ascent, also capitalizing on safe-haven flows that continue to dominate global financial markets.
GBPUSD has been pressured for the fifth session in a row on Tuesday, with recovery attempts looking shallow as USD bulls remain in control. The pair dipped to fresh two-year lows just above the 1.2100 mark at the start of the week, staying depressed around the lower end of the trading range. Interestingly, the cable made some recovery attempts earlier in the day but failed to preserve gains to come back under pressure, which implies that the path of least resistance remains to the downside for the time being. As such, GBPUSD could derail the 1.2100 mark in the near term as the greenback looks set to extend the rally. In this scenario, a break below the 1.2070 intermediate support would pave the way towards the 1.2000 psychological level last seen in March 2020. On the upside, the immediate target now arrives at 1.2200, followed by the 1.2260 zone.
USDJPY keeps oscillating around the 134.00 figure these days, refraining from a more robust ascent after peaking at fresh twenty-year highs above the 135.00 figure at the start of the week. On the other hand, the pair keeps clinging to the upper end of the trading range despite the overbought conditions, suggesting the dollar could stage another rally towards fresh highs after some consolidation. USDJPY was last seen changing hands around 134.20, down 0.13% on the day. Should the prices fail to hold above the 134.00 mark in the near term, the buck may derive support in the 133.20 zone. The daily RSI is pointing slightly lower in the overbought territory, which implies that the pair could see a deeper retreat in the near term before regaining the bullish momentum.
Gold prices plunged dramatically on Monday, pressured by a stronger dollar. The XAUUSD pair dipped back below the key daily moving averages to extend losses to nearly one-month lows around $1,813 early on Tuesday. The precious metal bounced marginally after a plunge but failed to regain the $1,830 zone, staying pressured during the European hours, albeit holding in positive territory on the daily charts. Now, the bullion needs to regain the key moving averages in order to get back above the $1,850 area, with bearish risks persisting while below this level. On the four-hour timeframes, the technical picture looks bearish, as the RSI is pointing south in neutral territory while the prices are holding below the key moving averages. The immediate upside target now arrives at $1,830, followed by the mentioned $1,850 barrier. In a wider picture, the outlook for the precious metal remains downbeat as well.