The US Dollar Index (DXY) experienced a sharp decline following the latest FOMC meeting, though the USD/JPY pair is showing specific technical resilience. Despite broader dollar weakness, USD/JPY buyers remain active as the pair eyes higher price levels in the near term. Recently, the pair dipped below the 158.00 level and tested the 100-period simple moving average on the 4-hour chart. Technical support for USD/JPY was identified at 158.85 along a bullish trend line, suggesting underlying strength despite the index's overall drop. Meanwhile, technical analysis suggests the DXY may have reached the upper limit of its long-term trading range, signaling a potential trend reversal. Market participants are now closely monitoring major currency pairs for signs of sustained dollar weakness or specific technical rebounds.
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