Global Currency Weakness Fuels USD Rally: EUR/USD, USD/JPY Update

The US dollar continues its impressive rally against all major currencies, with the Dollar Index climbing 0.5% to 106.20, its highest level in eight weeks. EUR/USD dropped 0.4% to 1.0945, breaking below the key 1.0950 support level as eurozone growth concerns mount. USD/JPY surged 0.7% to 149.65, approaching the critical 150.00 resistance amid Japan's political uncertainties. The dollar's strength reflects diverging global monetary policies, with the Federal Reserve maintaining its hawkish stance while other central banks face growth headwinds. Technical momentum indicators across major pairs favor continued USD strength, though near-term overbought conditions suggest potential consolidation. Traders should watch for any shifts in central bank rhetoric, particularly from the ECB's upcoming meeting. Key levels to monitor include EUR/USD support at 1.0920 and USD/JPY resistance at 150.00.