USD surges against EUR, JPY, GBP as USDJPY breaks above 162

The US dollar opened the trading week on a strong footing, gaining against the euro, Japanese yen, and British pound during the Asian Pacific session. The USDJPY pair broke decisively above the 162.00 level, a ceiling that had held for decades, reaching as high as 162.42 before settling near the breakout zone.

The breakout in USDJPY was the standout move, with the pair surging past the 40-year resistance area around 161.95-97. The initial push came with momentum, quickly extending to 162.396, then a brief dip held above the old ceiling at 162.04, followed by a fresh high at 162.42. Buyers remain firmly in control, and short sellers are being squeezed. This move reflects continued dollar strength driven by interest rate differentials favoring the US, as the Federal Reserve maintains a hawkish stance while the Bank of Japan keeps policy ultra-loose. For forex traders, the breakout signals a potential new leg higher in USDJPY, with the next targets likely around 163.00 and beyond. Live FX prices and charts on NowPrice show the pair trading near 162.30, with momentum indicators pointing to further upside.

The EURUSD, meanwhile, remains under pressure. The pair had attempted a rebound from the 100-hour moving average earlier, briefly pushing above the 200-hour moving average at 1.14084, but the upside could not be sustained. The dollar's broad strength capped the euro's recovery, and the pair has since slipped back below the 200-hour MA. Traders will watch for a test of the 100-hour MA support near 1.1370. The GBPUSD also weakened, with cable sliding below 1.2600 as the dollar rally gathered pace. Key levels to watch this week include the US ISM manufacturing data and Fed minutes, which could reinforce or temper the dollar's momentum. Any intervention warnings from Japanese officials may also introduce volatility in USDJPY, but for now, the trend is firmly dollar-positive.