Russell entry signals risk-on mode for USD pairs

Risk appetite surged as traders positioned for Russell index rebalancing, pressuring the US dollar across multiple pairs. GBP/USD rallied 0.5% to 1.3120, while USD/JPY retreated 0.4% to 149.35 as yen safe-haven flows increased. AUD/USD jumped 0.7% to 0.6715, benefiting from the broader risk-on sentiment and commodity currency strength. The Nasdaq 100's 1.2% gain reinforced the positive market mood, drawing capital away from defensive dollar positions. Technical analysis shows GBP/USD approaching key resistance at 1.3150, while AUD/USD eyes the 0.6750 level. Support for USD/JPY sits at 149.00, with a break potentially accelerating yen strength toward 148.50. The Russell rebalancing typically generates significant volume and can establish new trends lasting several weeks. Traders should prepare for continued dollar weakness if equity markets maintain their upward trajectory.