USD/JPY approaches Tuesday high as dollar strengthens across majors

The US dollar is gaining strength across major currency pairs, with USD/JPY testing resistance near Tuesday's US session highs. The greenback's broad-based recovery is pressuring most major currencies, with AUD/USD experiencing notable weakness partially attributed to disappointing Australian retail sales data. The weak retail figures marginally increase the likelihood of a Reserve Bank of Australia rate cut at next week's policy meeting, adding to the Australian dollar's downside pressure. However, the primary driver remains overall USD strength rather than individual currency weakness. Technical momentum suggests USD/JPY could breach recent highs if dollar buying persists. Traders should monitor key resistance levels from Tuesday's peak while watching for any shifts in risk sentiment that could affect yen safe-haven flows. The combination of broad dollar strength and potential RBA dovishness creates a challenging environment for commodity currencies.