Bullish Bias Holds for DXY and USD/JPY Amid Ongoing Market Volatility

The US Dollar Index (DXY) and USD/JPY continue to exhibit a bullish bias despite recent pullbacks, according to City Index UK.

The latest correction appears to be driven by profit-taking, renewed Bank of Japan intervention concerns, and positioning adjustments following the test of major long-term resistance. However, inflation risks remain tilted to the upside due to Middle East tensions disrupting energy markets and supporting elevated crude oil prices.

The broader bullish structure remains intact as long as the DXY holds above the 99.30-100.30 support zone, USD/JPY remains above 157.50-158.00, and Middle East supply disruptions continue to support crude oil prices.