DXY Weakness Signals Another USD/JPY Pullback—Trading Below 148

PumpDetector · 2025-12-26T20:26:14+00:00

The US Dollar Index (DXY) has dropped over 10 points, impacting the USD/JPY exchange rate which fell 40 points to around 147.41. Traders note this as a critical zone, suggesting broader dollar weakness and a shift toward the Japanese yen as a safe haven.

PumpDetector

2025-12-26 20:26:14

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The US Dollar Index DXY is showing notable weakness today, declining over 10 points as risk sentiment shifts across global markets. More significantly, the USD/JPY exchange rate has surrendered 40 points in a sharp reversal, now settling around 147.41 after recent strength.

This move matters for traders tracking the 40 USD volatility window—a critical technical zone for yen pairs. The index’s struggle to maintain higher levels suggests cooling momentum in the greenback, with the Japanese yen attracting renewed safe-haven flows.

For those monitoring currency correlations, the USD/JPY deterioration typically signals broader dollar weakness, though 147.41 still represents elevated levels compared to early 2024. Market participants will watch if the DXY can stabilize above current support, as further slides could push the pair toward 146 and below.

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