USD/JPY has gained 0.2% to trade at 154.85 during Asian trading, supported by the White House announcement to remove restrictive AI development regulations. The policy shift aims to boost US technology sector competitiveness, potentially strengthening dollar flows into tech investments. Meanwhile, the yen found only limited support from a new regional trade agreement, as investors remain focused on the Bank of Japan's ultra-loose monetary policy stance. The pair broke above the 154.50 resistance level, with momentum indicators suggesting further upside potential. Technical analysis shows immediate resistance at 155.20 (monthly high), while support sits at 154.30 (previous day's low). Traders are closely monitoring upcoming US GDP data and any signals from the BoJ regarding potential policy normalization, which could significantly impact the pair's trajectory in coming sessions.
USDJPY
Sentiment:
Positive
Source: Finnhub
EUR/USD has retreated from recent highs, trading lower as market optimism regarding potential European Central Bank rate cuts begins to fade. The currency pair, which had gained momentum on speculation of more aggressive ECB easing, is now facing selling pressure as traders reassess the likelihood of near-term policy adjustments. Recent ECB communications have suggested a more cautious approach to monetary policy changes, dampening expectations for immediate rate cuts that had previously supported euro strength. The shift in sentiment comes amid persistent inflation concerns in the Eurozone and mixed economic data that complicates the central bank's decision-making process. Technical indicators show EUR/USD struggling to maintain support above key levels, with momentum indicators turning bearish. The pair faces immediate resistance at recent highs, while downside risks increase toward psychological support levels. Traders should monitor upcoming ECB speeches and Eurozone economic releases for further directional cues.
EURUSD
Sentiment:
Negative
Source: Marketaux
European equity markets posted solid gains during Wednesday's morning session, with major indices climbing 0.5-0.8% on positive sentiment surrounding the US-Japan trade agreement. The deal's potential to boost global trade flows lifted risk appetite, though currency markets showed divergent reactions. EUR/USD remained range-bound near 1.0920, lacking clear directional momentum despite the risk-on environment. GBP/USD edged 0.1% lower to 1.2845 as traders awaited UK economic data releases. The Swiss franc weakened marginally against major counterparts, with USD/CHF rising to 0.8975 as safe-haven demand diminished. Market participants noted the disconnect between equity optimism and currency market caution, suggesting forex traders remain focused on central bank policy divergences rather than trade developments. Near-term currency volatility appears limited, with major pairs consolidating within recent ranges ahead of key economic releases later this week.
EURUSD
GBPUSD
USDCHF
Sentiment:
Neutral
Source: Marketaux
USD/JPY declined 0.5% to 155.20 as markets responded positively to a newly announced trade agreement between the United States and Japan. The deal, which reduces tariffs on key industrial goods and agricultural products, boosted risk appetite and weakened the safe-haven dollar. Japanese equities rallied 1.2% following the announcement, with the Nikkei reaching new highs for the month. The yen's strength was further supported by expectations that the Bank of Japan may adjust its yield curve control policy sooner than anticipated. Technical indicators show USD/JPY breaking below the 155.50 support level, with the next target at 154.80. The 50-day moving average at 156.00 now acts as resistance. Traders should monitor upcoming US GDP data and Japanese inflation figures, which could either accelerate the pair's decline or trigger a reversal if the data surprises to the upside.
USDJPY
Sentiment:
Negative
Source: Marketaux
Gold prices advanced 0.8% to $2,048 per ounce, approaching the critical $2,050 resistance level as declining real yields and a softer US dollar provided support. The move follows last week's lower-than-expected US CPI data, which came in at 3.1% year-over-year versus 3.3% forecast, reinforcing expectations for Federal Reserve rate cuts in 2025. Real yields dropped 15 basis points to 1.85%, making non-yielding gold more attractive to investors. Market positioning data shows net long positions increasing by 12% over the past week. The technical picture remains constructive with gold holding above its 20-day moving average at $2,035. A decisive break above $2,050 could open the path to $2,075, while failure to breach resistance may lead to consolidation between $2,035-2,050. The longer-term outlook remains bullish as monetary easing expectations persist.
XAUUSD
Sentiment:
Very Positive
Source: Finnhub
USD/JPY traded volatile around 155.40 following the US-Japan trade agreement announcement, with conflicting forces affecting the pair. While the deal initially sparked risk-on sentiment that typically weakens the yen, the agreement's provisions for increased Japanese exports to the US are expected to strengthen Japan's trade balance. The pair briefly touched 155.80 before retreating to current levels. Other risk-sensitive pairs showed clearer trends, with AUD/USD gaining 0.4% to 0.6520 and USD/ZAR falling 0.6% to 18.25. Market participants remain divided on the yen's direction, with some expecting continued weakness due to yield differentials while others anticipate BoJ policy normalization. Near-term support sits at 155.00, with resistance at 156.20. Traders should watch for follow-through in risk sentiment and any comments from Japanese officials regarding currency levels.
USDJPY
EURUSD
AUDUSD
USDZAR
Sentiment:
Neutral
Source: Marketaux
The US dollar strengthened following an exceptionally well-received $13 billion 20-year Treasury bond auction, with yields settling at 4.935%, below the When-Issued level of 4.951%. The auction displayed remarkable demand characteristics, featuring a negative tail of -1.6 basis points versus the -0.1 average, and a bid-to-cover ratio of 2.79x compared to the typical 2.62x. Direct bidder participation surged to 21.86% from the 18.0% average, signaling robust domestic appetite for US debt. The dollar index climbed 0.3% to 104.25, with EUR/USD dropping to 1.0915 and GBP/USD sliding to 1.2840. The strong auction results reinforced expectations that the Federal Reserve can maintain higher rates without destabilizing the bond market. Technical analysis shows the dollar index approaching resistance at 104.50, with momentum indicators suggesting further upside potential if Treasury demand remains elevated.
EURUSD
GBPUSD
Sentiment:
Positive
Source: Marketaux
EUR/USD remains range-bound near 1.0850 levels as forex markets face an exceptionally quiet data calendar, with only the Eurozone consumer confidence report scheduled for release. The pair has shown minimal movement of less than 0.1% (10 pips) in early European trading, reflecting the absence of major catalysts. Traders are largely sidelined, maintaining positions based on recent narratives around ECB and Fed policy divergence. The upcoming Eurozone consumer confidence data is unlikely to significantly impact trading, given its typically limited market influence. Technical indicators suggest EUR/USD is consolidating within a tight 1.0830-1.0870 range, with neither buyers nor sellers showing conviction. The lack of economic releases leaves the pair vulnerable to headline-driven volatility or continuation of recent trends. Traders should monitor any unexpected geopolitical developments or central bank communications that could break the current stalemate.
EURUSD
Sentiment:
Very Positive
Source: Finnhub
S&P 500 Futures surged 0.25% to 6363 points, reaching another record high as risk appetite strengthens across global markets. The sustained equity rally is creating mixed signals for USD pairs, with the dollar showing resilience despite the risk-on environment. Strong corporate earnings expectations are driving investor optimism, potentially reducing safe-haven demand for USD and JPY. The divergence between the S&P 500's continued climb and Nasdaq's pause suggests sector rotation rather than broad market weakness. For forex traders, the persistent equity strength could pressure funding currencies like JPY and CHF while supporting commodity currencies. Key USD pairs to watch include USD/JPY near 156.50 resistance and AUD/USD testing 0.6750. Continued equity gains may limit dollar upside, particularly if earnings reports exceed expectations and reinforce the soft-landing narrative for the US economy.
USDJPY
AUDUSD
Sentiment:
Positive
Source: Finnhub
USD/JPY exhibited heightened volatility during Asian trading, fluctuating between 155.80 and 156.20 as markets digested news of a US-Japan trade agreement. The pair's indecisive price action reflects conflicting interpretations of the deal's impact on bilateral trade flows and currency dynamics. Initial yen strength on expectations of improved Japanese export competitiveness was quickly reversed as traders reassessed potential USD demand from increased bilateral trade. The choppy trading conditions suggest market participants lack clarity on the agreement's specific terms and implementation timeline. Technical indicators show USD/JPY trapped between the 156.50 resistance and 155.50 support, with momentum oscillators signaling neutral bias. Traders should expect continued volatility until more details emerge about the trade deal's provisions. The Bank of Japan's policy stance remains a key factor, with any hints of normalization likely to provide clearer directional bias for the pair.
USDJPY
Sentiment:
Neutral
Source: Marketaux
Asian markets saw divergent reactions to the US-Japan trade announcement, with the Nikkei 225 surging 1.2% while JPY pairs displayed erratic behavior across the board. USD/JPY fluctuated in a 40-pip range around 156.00, unable to establish clear direction despite the positive equity sentiment. EUR/JPY and GBP/JPY showed similar indecision, trading in tight ranges near 169.50 and 198.20 respectively. The trade deal's boost to Japanese exporters failed to translate into sustained yen strength, as traders remained cautious about the Bank of Japan's ultra-loose monetary policy. Market participants are weighing improved trade relations against persistent Japan-US yield differentials. Technical analysis shows JPY pairs consolidating within recent ranges, awaiting catalysts for breakout moves. The disconnect between surging Japanese equities and choppy yen price action suggests traders need more clarity on the deal's long-term implications for Japan's economic outlook and potential BoJ policy adjustments.
USDJPY
EURJPY
GBPJPY
Sentiment:
Neutral
Source: Marketaux
USD/JPY trading remains subdued near 153.20 following news that Japan will increase agricultural imports from the United States, including rice purchases. The Trump administration official confirmed the expanded trade arrangement maintains existing sectoral tariffs, suggesting limited immediate impact on the currency pair. Market participants are weighing the trade development against broader political uncertainties affecting yen sentiment. The increased agricultural purchases could marginally improve US trade balance figures, providing mild dollar support. However, the absence of broader tariff adjustments limits the agreement's forex market impact. Technical indicators show USD/JPY consolidating below the 153.50 resistance level, with support established at 152.80. Traders await further clarity on US-Japan trade negotiations and potential Bank of Japan policy adjustments for clearer directional signals.
USDJPY
Sentiment:
Neutral
Source: Finnhub
USD/JPY remains range-bound near current levels as SMBC analysts suggest positive trade news will provide only modest support for the Japanese yen amid ongoing political uncertainties. The bank's assessment indicates that while recent US-Japan trade developments may offer temporary yen strength, broader political risks continue to cap appreciation potential. Market participants are cautious about sustained yen rallies given the complex geopolitical landscape and mixed economic signals from both economies. The analysis suggests traders should expect continued volatility in USD/JPY with limited directional conviction. Technical levels show the pair consolidating within a narrow range, with resistance at 153.50 and support at 152.50. Near-term price action likely depends on resolution of political uncertainties and any shifts in central bank policy stances from either the Federal Reserve or Bank of Japan.
USDJPY
Sentiment:
Neutral
Source: Marketaux
EUR/USD is positioned for potential gains ahead of the European Central Bank's July policy meeting, with markets anticipating hawkish signals amid persistent inflation concerns. The pair currently trades near 1.0920, showing resilience above the 1.0900 support level. Eurozone inflation remains elevated at 5.5%, well above the ECB's 2% target, fueling expectations for continued monetary tightening. Markets are pricing in a 70% probability of another 25 basis point rate hike, which would bring the deposit rate to 4.00%. Technical indicators suggest bullish momentum, with the RSI at 58 and the pair trading above both 50-day and 200-day moving averages. Immediate resistance lies at 1.0970, with a break potentially opening the path to 1.1000. The dollar's recent weakness, driven by cooling US inflation data, provides additional support for EUR/USD upside. Traders should monitor ECB President Lagarde's press conference for forward guidance on the rate trajectory.
EURUSD
Sentiment:
Very Positive
Source: Marketaux
EUR/USD declined approximately 0.8% to 1.0820 as European equities closed mixed, with Germany's DAX leading losses at -1.09% amid escalating trade tensions. The euro weakened as concerns mount over potential US tariffs, with the EU preparing countermeasures if no agreement is reached by August 1. France's CAC also fell 0.69%, while UK's FTSE 100 managed a marginal 0.12% gain. The trade uncertainty particularly impacted German export-oriented companies, pressuring the euro against major currencies. Technical indicators suggest EUR/USD faces immediate support at 1.0800, with resistance at 1.0850. The heightened trade tensions could continue weighing on the euro in the near term, especially if diplomatic efforts fail to resolve the tariff dispute before the deadline.
EURUSD
Sentiment:
Negative
Source: Finnhub
AUD/USD faces a pivotal technical test at the 0.6750 resistance level, with the pair consolidating near 0.6735 as traders await Wednesday's Australian inflation report. The currency has gained 1.2% over the past week, supported by resilient commodity prices and expectations of further RBA tightening. Markets are closely watching for Q2 CPI data, with consensus expecting a 6.2% year-over-year reading, down from 7.0% previously. A higher-than-expected inflation print could prompt the Reserve Bank of Australia to deliver another rate hike at its August meeting, potentially pushing AUD/USD through key resistance. Technical analysis reveals a ascending triangle pattern, with immediate resistance at 0.6750 and stronger barriers at 0.6800. Support holds firm at 0.6680, coinciding with the 50-day moving average. The US dollar index has retreated 1.5% from recent highs, providing a favorable backdrop for AUD strength. Risk sentiment and Chinese economic data will also influence near-term direction.
AUDUSD
Sentiment:
Positive
Source: Marketaux
The US Dollar Index retreated 0.12% as Treasury yields declined, with selling pressure intensifying after July's Richmond Fed manufacturing survey current conditions index unexpectedly dropped to an 11-month low. The weaker-than-expected manufacturing data reinforced concerns about slowing US economic growth, prompting investors to reduce dollar exposure. Gold capitalized on the dollar weakness, rallying as lower yields reduced the opportunity cost of holding non-yielding assets. The disappointing Richmond Fed data adds to recent mixed economic signals, suggesting the Federal Reserve may need to reassess its monetary policy stance. USD/JPY fell 0.15% to 155.20, while EUR/USD gained 0.10% to 1.0845. Near-term dollar weakness could persist if upcoming economic data continues to disappoint, with support for the DXY at 104.50.
USDJPY
EURUSD
Sentiment:
Negative
Source: Marketaux
AUD/USD maintained channel support at 0.6750, trading flat at 0.6755 as hawkish RBA meeting minutes offset disappointing Australian employment data. The Reserve Bank of Australia's minutes revealed ongoing concerns about persistent inflation, suggesting interest rates may need to remain elevated longer than previously anticipated. This hawkish stance provided crucial support for the Australian dollar despite weaker-than-expected jobs figures. NZD/USD also benefited from regional sentiment, rising 0.1% to 0.6120. Technical analysis shows AUD/USD respecting its ascending channel support, with resistance at 0.6800. The currency pair's resilience suggests traders are prioritizing the RBA's hawkish stance over short-term employment weakness. Further gains could materialize if upcoming Australian inflation data supports the central bank's cautious approach to rate cuts.
AUDUSD
NZDUSD
Sentiment:
Neutral
Source: Marketaux
GBP/USD consolidates around 1.2950, showing minimal movement as traders balance concerns over rising UK government borrowing against US trade policy uncertainty. UK public sector net borrowing expanded sharply to £17.4 billion in June, exceeding forecasts and marking the highest June borrowing since 2021. The pound's resilience suggests markets are more focused on pending US trade announcements, with investors awaiting clarity on potential tariff implementations. Technical indicators show GBP/USD trapped between immediate resistance at 1.2980 and support at 1.2920. The pair's near-term direction likely depends on US trade policy developments and upcoming UK economic data releases. Risk sentiment remains fragile, with safe-haven flows potentially limiting sterling's upside potential despite dollar weakness.
GBPUSD
Sentiment:
Neutral
Source: Marketaux
USD/JPY retreated 0.4% to 148.30 as the Japanese yen strengthened following Bank of Japan comments suggesting minimal policy impact from recent election results. BoJ officials indicated the central bank remains committed to its current monetary policy framework, dismissing speculation that political changes might accelerate policy normalization. The yen's appreciation reflects reduced uncertainty around Japan's monetary trajectory, with markets now pricing in continued ultra-loose policy settings. Technical analysis shows USD/JPY breaking below the 148.50 support level, opening potential for further decline toward 147.80. However, diverging monetary policies between the Fed and BoJ continue to support the pair's longer-term uptrend. Traders should monitor upcoming Japanese inflation data and any shifts in BoJ communication for directional cues.
USDJPY
Sentiment:
Negative
Source: Marketaux
