Gold Struggles as Strong US Dollar Weighs Heavy; USDJPY Eyes Critical Resistance Zone
Gold prices continue to struggle under pressure from a strong US dollar, keeping its recovery fragile. The metal's price action remains below the descending trendline connecting lower highs since March 2026, maintaining its bearish bias. This is evident on the daily chart as the daily RSI has broken down below its multi-month triangle pattern.
The USDJPY pair, however, is approaching a critical resistance zone between 160.00 and 163.00. A sustained breakout above this level could open the door to 161.30 and 163.20, but BOJ intervention risks are likely to increase significantly as price approaches these levels.
The key support levels for USDJPY remain at 158.00, while for gold, it is 4,270. A breakdown below these levels would increase the risk of a deeper correction or decline. On the other hand, a sustained breakout above the multi-month trendline resistance and 4,360 level could expose gold to the next resistance zones.