Story Continues

The first area I will be watching is 99.12, as the downwards support zone begins there. Breaking below this would expose 98.90, 98.72, and 98.56. In the opposite direction, looking at the previous support zone of 99.35 – 99.48 and adding 99.62, the resistance zone starts to form there.

RSI has dropped and begun to enter oversold territory, so a bounce in the index is possible, but I also believe that the DXY will drop furtherwhen trading below the 99.48 range. I will reverse that opinion if the index breaks above the 99.62 range, but I believe the rallies will be corrective in nature rather than a strong downtrend.

GBP/USD Technical Analysis: Sterling Bounces From 1.3477 but 1.3526 Resistance Keeps Bears in Control

Currently, GBP/USD is trading at the 1.3500 level on the 4-hour chart as price rebounds from the support zone of 1.3477. What I want to point out is that price is bouncing out of a support zone, but is below both moving averages and the 1.3526 support area which is now an area of resistance.

1.3526 is the first resistance area, followed by the resistance area of 1.3565 and 1.3601. Beyond those, resistance is expected to cluster around the area of 1.3656-1.3676. 1.3477 is the next support area, with potential support at 1.3435 and 1.3400 should 1.3477 break.

RSI is recovering from deeply oversold territory. This leads to believing that the pair may continue to climb, however, I am still bias to the below 1.3526 and 1.3565 bearish resistance zone. Should 1.3565 bullish resistance zone break, I will black a resistance call. Until then I believe this is a corrective rally in a weaker bullish short-term trend.

EUR/USD Technical Analysis: Euro Rebounds From 1.1571 but 1.1610–1.1625 Is the Real Test

EUR/USD is currently trading at 1.1608. The pair has been bought aggressively on the 1.1571 support level, and what has been interesting is how quickly the pair has bounced from oversold levels. That said, the level that is currently more important is the previous support zone and the descending trendline.

The pair has bounced directly into the zone, rather than the bounce itself.

1.161–1.1625 and 1.1659 are immediate resistance level regions currently. Above 1.1659, buyers would be focused on 1.1686 and 1.1711. Sellers continue to define 1.1571 as the first major support level on the downside with 1.1547 and ultimately 1.1517.

RSI recovering in oversold territory favors the bullish scenario. I’m neutral, but I favour market bears, as long as EUR/USD is below 1.1625. A decisive close above 1.1625 would lead me to a more bearish outlook. A retest of the area around 1.1571 would also be of interest.

This article was originally posted on FX Empire

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The EURJPY pair activated with negative pressure yesterday, forming a sharp decline to surpass the previously suggested negative stations, resuming the bearish trend by reaching 182.50.

We expect forming negative attempts in the current trading, to target 182.10 level then attempts to press on the support near 181.35, while regaining the bullish trend requires forming a strong bullish rebound, to settle above 184.30 level.

The expected trading range for today is between 181.35 and 183.90

Trend forecast: Bearish

Arthur Hayes predicts EURJPY will fall to 140 or below by mid-2027, with year-end 2026 targets for Ether, Ethena and Ether.fi.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

The U.S. Dollar Indexis currently trading at 99.23 on the 2-hour chart after dropping below the recovering channel from the August lows. What is interesting is how quickly the index was rejected at the 99.80 – 99.86 range. DXY lost 99.62, 99.48, and 99.35 very quickly, which shows how much the structure of the bullish recovery has weakened.

The first area I will be watching is 99.12, as the downwards support zone begins there. Breaking below this would expose 98.90, 98.72, and 98.56. In the opposite direction, looking at the previous support zone of 99.35 – 99.48 and adding 99.62, the resistance zone starts to form there.

RSI has dropped and begun to enter oversold territory, so a bounce in the index is possible, but I also believe that the DXY will drop furtherwhen trading below the 99.48 range. I will reverse that opinion if the index breaks above the 99.62 range, but I believe the rallies will be corrective in nature rather than a strong downtrend.

Westpac analysts expect USD/JPY to test 162 in September before retreating to 154 by end-2027 and 146 by the end of 2028.

The US Dollar to Japanese Yen (USD/JPY) exchange rate slipped to 159.6004 on Wednesday, leaving Westpac’s September forecast target of 162 around 1.5% above spot.

USD/JPY had climbed as high as 160.3872 during the previous 48 hours before reversing sharply, while the daily decline reached 0.37%.

View full size

The chart above shows the pair giving back its advance through 160.30 and finishing near the bottom of its 159.4938-160.3872 range.

Westpac’s September call is effectively for one more test higher rather than an unprecedented breakout.

The pair traded as high as 163.9798 in July, so 162 has already proved reachable this summer.

What follows in Westpac’s forecast curve is far more interesting.

The bank sees USD/JPY easing to 160 in December and remaining there in March 2027, before falling to 158 in June, 156 in September and 154 at the end of next year.

The decline then continues at a remarkably steady pace: 152 in March 2028, 150 in June, 148 in September and 146 in December.

From the forecast peak of 162 to the final 146 target, that would be a 9.9% fall in USD/JPY and an appreciation of almost 11% for the Yen against the Dollar.

The Yen recovery is not built on aggressive Fed cuts

Westpac’s accompanying interest-rate forecasts make the currency path more striking.

The bank keeps the Federal Funds rate at 3.625% throughout the forecast period, rather than relying on a sizeable US easing cycle to pull USD/JPY lower.

It also expects the US 10-year Treasury yield to ease only modestly, from 4.65% in September to 4.55% in the first half of 2027.

The yield then rises gradually to 4.85% by December 2028, precisely when USD/JPY reaches 146.

In other words, Westpac is forecasting a major Yen recovery without a lasting collapse in US yields.

The published figures do not include a separate Japanese interest-rate path or written explanation for the move, so it would be wrong to assign the decline to one specific catalyst.

Still, the curve fits a market increasingly focused on whether Japanese policy can take over from direct currency support.

As we noted in our recent Yen analysis, intervention can deliver an abrupt move but has struggled to overcome the interest-rate gap for long.

Westpac’s numbers instead describe a slow adjustment lasting more than two years.

These are dated forecast points rather than promised trading stops, but the message is unusually clear: 162 may come first, while the bigger move is eventually lower.

Friday’s Japanese household-spending figures and US employment report provide the next test, with Westpac forecasting a 70,000 rise in payrolls against a market estimate of 55,000.

Our currency coverage draws on live market data, official economic releases and published bank research.

The GBPJPY pair formed a sharp decline yesterday, affected by the repeated negative pressures, surpassing the previously waited targets by reaching 214.95 level, to settle near 212.35 level as appears in the above image.

Providing extra negative momentum by stochastic makes us expect attempting to break 211.45 support, which represents a confirmation key for the main trend in the upcoming trading, breaking this support will confirm the continuation of the negativity, to expect forming the next target at 210.25 level, while holding above it will provide a chance for recovering the losses and forming new bullish waves.

The expected trading range for today is between 211.50 and 214.25

Trend forecast: Bearish

Created on September 03, 2026

This currency pair has spent recent months rewarding traders who were prepared to buy dips, but the market is beginning to look much less comfortable with that familiar pattern as the US Dollar stays strong.

The recent move lower is starting to look more convincing, with Sterling now not one of the stronger major currencies. This shift in the market’s perception of the British Pound may be the catalyst, combined with technical changes, that make this currency pair worth paying more attention to over the coming days.

The good news for traders is that the GBP/USD looks like it may behave very respectful of technical factors, which might make it interesting to trade now.

Why GBP/USD Is Bearish as Dollar Strength Returns

Both currencies can be seen as relatively strong and weak, with the US Dollar reasserting its earlier strength and starting to move more decisively higher. However, this will not be truly decisive until the US Dollar Index get established above the big round number at 100, which looks likely to be a pivotal point.

There is major US data due this week – average earnings and NFP – which could also give the relative value of the US Dollar a big push. In these cases, “accidents often happen along the line of least resistance”, so a trend can get a nice tailwind from a surprise.

Finally, technical factors are looking very strong and decisive, with some obvious lines in the sand which traders can use to gauge the picture.

GBP/USD Technical Analysis: Key Resistance at 1.3520

The price action has been decisively bearish for over one week now, ever since the price failed to break out to a new six-month high price above 1.3650 and began moving lower with a series of orderly breakdowns which flipped support to become new resistance levels. There has not even been one single true higher low in this entire movement until a few hours ago, and the early and light status of that makes it highly questionable.

Another factor which adds to the convincing nature of this bearish leg is the way this price action can almost completely be captured by a linear regression analysis study, which can be seen within the price chart below. When this feature can be drawn to make a price channel symmetric, it tends to be more reliable.

The standout support or resistance level which looks as if it could be pivotal today is the resistance overhead at 1.3520, which might extend as high as 1.3530 and will be confluent with the upper trend line of the descending price channel for most of the rest of today.

GBP/USD H1 Price Chart Showing Recent Impulsive Moves

The Blind Spot: Why the Short Case May Not Be Straightforward

The blind spot here may be an over-reliance on technical analysis. As a technical analyst, today’s chart of this currency pair jumps out as having meaningful indications. This probably makes me overconfident that a bearish scenario will play out over the near term.

Unless there is a major and unscheduled surprise from the Bank of England or even the European Central Bank, it is difficult to see what I might be missing, except maybe the tension between the USA and Iran escalating after the countries traded military blows yesterday. However, the situation seems to have de-escalated in recent hours, with no new US attacks last night. It is conceivable a Fed member might say something that is interpreted as dovish which could trigger a minor US Dollar selloff.

Risks to the Bearish GBP/USD Outlook

I see the dream scenario here for traders, especially day traders, is to hope for a retracement to the 1.3520 level which tests that area which rejects it forcefully – this could be a very good short trade entry signal.

Taking 1.3520 as the likely pivotal point, an alternative scenario will likely play out if the price can get established above that level today, which will open the door to a rise to 1.3554 – this 1.3550 has also recently acted as a very pivotal area, so this resistance level might play a significant role in what happens after that.

GBP/USD is worth watching because it is making a technical steady bearish move which is supported by fundamental, sentimental, and most of all technical indicators. If it continues moving lower, it has a long way to fall while remaining within its dominant range, suggesting there could be a good opportunity to get involved on the short side, although that moment might well not be arriving today. Alternatively, the pair may surprise, if the first potential lower high we saw form within recent hours produces an impulsive bullish move which breaks the resistance level at 1.3520.

Ready to trade our GBP/USD analysis? Here is our list of the best Forex brokers worth checking out.

Created on September 02, 2026

The US dollar continues to see a lot of back-and-forth motion against the yen, as we are sitting at a major inflection point, and waiting for the jobs report.

USD/JPY

The US dollar continues to see a lot of back-and-forth trading against the Japanese yen as the interest rate differential continues to play out. This carry trade position has been one that I have been involved in for some time now, and we find ourselves hanging around the crucial 50-day EMA, an area that a lot of technical traders will pay a certain amount of attention to.

The 160 yen level seems to be a bit of a magnet for price as well, but it is worth noting that interest rates in America continue to climb, and that only widens the overall carry trade prospects. With this, the market will continue to be noisy, but it is probably also worth noting that we have the jobs number coming out on Friday, and that tends to be a big mover of this USD/JPY currency pair overall.

50-Day EMA, 160 Level, and Intervention Risks

I do not like the idea of shorting this pair, mainly because I just don’t want to own the Japanese yen. The Japanese yen has been beaten up pretty significantly, and with good reason, as the Japanese are essentially stuck with their monetary policy being ultra-loose.

In this environment and the fact that energy inflation continues to be a major problem, it is just difficult for me to see how the Japanese yen continues to find any footing outside of intervention. There are intervention risks here, obviously, as we have seen quite a bit of intervention over the last several months, but at the end of the day, intervention only slows down what is going on in a market. It very rarely turns things around.

The jobs number on Friday will be parsed, and it will be very important to pay attention to, but I also recognize that the overall trend is still the same. It is still bullish for the US dollar and bearish for the Japanese yen. I like buying dips.

Want to trade our USD/JPY forex analysis and predictions? Here’s a list of forex brokers in Japan to check out

Christopher Lewis is a technical analyst and market commentator at DailyForex with more than two decades of trading experience in Forex and other leveraged markets. Based in Columbus, Ohio, he specializes in chart-based analysis of major currency pairs, stock indices, commodities, and energy markets, focusing on clear support and resistance levels, trend structure, and risk management. Christopher produces daily written and video analysis for traders who rely on technical setups to navigate volatile market conditions

As seen on: Pairs Of Aces Podcast,The Trader Guy, FXEmpire

The week has not been particularly favorable for the euro. Over the last three trading sessions, EUR/USD has declined by nearly 0.5%, once again highlighting a meaningful bearish bias in the short term. For now, this selling pressure has been supported by factors such as the recovery in the U.S. bond market and the resurgence of geopolitical tensions, developments that have allowed the dollar to regain part of the ground lost in previous weeks. As long as these catalysts remain relevant, selling pressure around EUR/USD could continue to play an important role during the coming trading sessions.

Is Inflation Risk Returning to the Markets?

Today’s session has been particularly relevant due to new developments coming out of the Middle East. The United States resumed attacks against certain targets in Iran after nearly a month without significant exchanges between the two sides. In addition, attacks against two tankers in the Strait of Hormuz were reported at the start of the week, a development that has once again raised concerns about potential disruptions to one of the most important routes for global energy trade and reduced expectations of a quick diplomatic resolution to the conflict.

The market’s reaction to these events has been an increase in the geopolitical risk premium and a rise in uncertainty surrounding the outlook for global markets. This effect is already beginning to appear in the behavior of WTI crude oil, which has once again moved closer to the $90 per barrel area. In broader terms, this dynamic is reviving concerns over rising energy costs and could continue to fuel expectations of higher inflationary pressures in the months ahead.

This environment also comes at a time when markets continue to reassess the outlook for the Federal Reserve. Since Jackson Hole, investors have increasingly priced in a more hawkish stance after Kevin Warsh emphasized that inflation remains a meaningful risk to the U.S. economy. These comments have helped reinforce expectations that interest rates could remain elevated for longer or even leave room for additional hikes should inflation continue to prove persistent.

This situation is already being reflected in the U.S. bond market. 10-year Treasury yields continue to move toward the 4.8% area, reaching new highs for 2026. While European bond yields have also shown a gradual recovery, benchmark yields remain near 3.7%, still well below equivalent levels in the United States. This yield differential continues to support the relative attractiveness of dollar-denominated assets over their European counterparts.

Source: TradingEconomics

Taking all of this into account, the current environment remains supportive of the U.S. dollar. On one hand, rising geopolitical tensions could once again encourage demand for safe-haven assets. On the other, the strength of the U.S. bond market continues to support interest in dollar-denominated investments. Together, these factors help explain why the euro is struggling to regain ground in a consistent manner.

This reaction can already be seen in the behavior of the DXY Index, which measures the dollar’s performance against its major rivals. The index continues to maintain a relatively steady upward slope and is once again approaching the 100-point area, reflecting a gradual improvement in confidence toward the greenback during recent sessions.

Source: TradingEconomics

As a result, recent developments appear to be providing fresh support for the U.S. dollar. As long as the market continues to perceive that the dollar is benefiting from both geopolitical concerns and expectations of higher interest rates, the euro may continue facing difficulties in establishing a sustained recovery. Under this scenario, bearish pressure around EUR/USD could remain relevant during the upcoming trading sessions.

EUR/USD Technical Outlook

Source: StoneX, Tradingview

• Potential Bullish Trendline Enters a Risk Zone: Since late July, a bullish trendline had been developing as a result of the euro’s recovery over recent weeks. However, the latest downside price action has started to place this structure under pressure and could signal an important shift in the broader chart outlook. Unless buying pressure begins to stabilize more convincingly, it is possible that the market enters a more neutral phase during the coming sessions.
   

• RSI: The RSI is now fluctuating around the neutral 50 level. This reading suggests that the balance between bullish and bearish momentum has become increasingly even and may reinforce the importance of a broader period of indecision in the short term.
   

• MACD: A similar picture can be seen in the MACD histogram, which continues to fluctuate near the neutral 0 line. This reflects balance in the average strength of short-term moving averages and supports the possibility that the market remains in a consolidation phase over the next several sessions.
   

Key Levels to Watch:

• 1.17127 – Key Resistance: A high not seen since May of this year and the most important upside barrier within the current structure. Price action that manages to approach or break above this area could restore the relevance of the bullish trend observed in previous weeks and support a more meaningful recovery.
   

• 1.16300 – Nearby Barrier: An important equilibrium zone that coincides with previous retracement levels and the 200-period Simple Moving Average. As long as the price continues to trade around this area, a lack of clear direction could remain dominant and even support the development of a broader trading range in the short term.
   

• 1.15168 – Critical Support: A level that coincides with one of the most important lows recorded in recent weeks as well as the 50-period Simple Moving Average. A move below this area could strengthen a more dominant bearish bias within short-term price action.
   

Written by Julian Pineda, CFA, CMT – Market Analyst

Follow him on: @julianpineda25