DAX and USD/JPY Present Key Trading Opportunities Amid Market Shifts

Technical analysis reveals compelling setups in both the German DAX index and USD/JPY currency pair as markets navigate shifting sentiment. The DAX has pulled back to test crucial support at 18,250 points after failing to break above resistance at 18,500, presenting a potential buying opportunity for range traders. Meanwhile, USD/JPY exhibits a bearish flag pattern near 150.00, suggesting further downside potential toward 148.50 support if the psychological level breaks. The dollar index consolidation near 106.00 adds context to the USD/JPY setup, with yen strength reflecting both safe-haven flows and speculation about potential Bank of Japan policy adjustments. For the DAX, earnings season results and ECB policy expectations are key fundamental drivers. Traders should monitor the 149.80 level on USD/JPY for confirmation of the bearish continuation, while DAX buyers might consider entries near 18,200 with stops below 18,100.