The USD is starting the North American session on the defensive against the JPY, trading lower by roughly 0.40%. Early trading has seen the pair press against—and attempt to move and stay below—the 38.2% retracement of the rally from the mid-October low, a key technical level that comes in near 154.625. A sustained break below that level would strengthen the bearish tilt and raise the question: Can the sellers keep the downside momentum going, or will the market once again find support and rotate higher?
For EURUSD and GBPUSD, the price action has followed a similar rhythm. The initial journey lower — reflecting dollar strength — pushed each pair toward important technical support zones. However, in both cases, buyers stepped in at those meaningful levels, halting the declines and triggering measured retracements higher. Those rebounds are giving dip buyers a bit more confidence, at least for now, that support is still being respected.
In the video above, I walk through each of these three currency pairs from a technical perspective. I outline the prevailing bias, identify the key upside and downside targets, and highlight the risk levels that traders should be watching as the session unfolds
