Market Sector Scanner: Equity Markets Range-Bound as Dollar Strength Builds, Gold at Record Highs

Markets were mostly range-bound last week, with focus on political pressure on U.S. interest rate policy after reports of an investigation into Fed Chair Jerome Powell. U.S. and Japanese equities briefly hit record highs but finished little changed, as softer U.S. inflation contrasted with strong consumer spending. Rising geopolitical tensions supported gold and WTI crude oil.

Scan for opportunities on:

• Forex market (major currency pairs)
• Equities
• Commodities (gold)

Key Events Calendar for January 19 – January 23

Forex Market

USD/JPY

Last Week Recap
Rising 10-year Japanese bond yields weakened the yen early in the week, pushing USD/JPY above the 158 level. Later in the week, renewed warnings about possible intervention from Japanese authorities led to profit-taking and a pullback.

Technical Picture
USD/JPY briefly showed a short-term sell signal near the upper Bollinger Band, but the overall uptrend remains intact. The 10-day moving average is still rising, and as long as price stays above 158, the bullish trend remains in place.

Outlook This Week
Intervention risk remains, but concerns about Japan’s government finances continue to pressure the yen. Buying pullbacks toward the 10-day moving average looks like the better strategy than trying to sell against the trend.

GBP/JPY

Last Week Recap
GBP/JPY surged earlier in the week but reversed sharply, ending the week below the 10-day moving average. Weakness in the pound against the U.S. dollar weighed on the pair and led to a poor weekly close.

Technical Picture
Similar to USD/JPY, GBP/JPY triggered a short-term sell signal near the upper Bollinger Band. The close below the 10-day moving average is a bearish short-term sign, with initial support seen near the previous highs around 211.

Outlook This Week
GBP/JPY has risen strongly over the past few months and appears due for a pause or consolidation. However, with the yen still likely to remain weak, a range-trading approach looks more suitable this week rather than expecting a sustained breakdown.

EUR/USD

Last Week Recap
EUR/USD remained under pressure last week as the U.S. dollar continued to strengthen alongside rising long-term U.S. interest rates, extending the broader downtrend into 2026.

Technical Picture
EUR/USD is in a textbook downtrend, with the 10-day moving average pointing sharply lower and acting as resistance on rallies. Prices are currently near the lower Bollinger Band, suggesting the market is short-term oversold.

Outlook This Week
While the pair looks oversold in the near term, the underlying U.S. dollar strength remains a dominant theme this year. Waiting for pullbacks toward the 10-day moving average before looking for selling opportunities appears to be the better approach.

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Equities

U.S. Stock Market

Last Week Recap
The Nasdaq traded mostly sideways last week as investors stayed cautious about pushing technology stocks higher after strong gains in recent years. With no clear reason to buy and continued concerns over high AI valuations, the market lacked direction.

Technical Picture
The technical setup remains unchanged. The 10-day moving average is flat, and prices are holding near the middle of the Bollinger Bands, showing a continued consolidation phase.

Outlook
With no clear drivers for U.S. equities so far this year, range trading remains the most suitable short-term strategy. Over the medium term, downside risks may increase if valuations stay elevated without fresh support.

Commodities

Gold

Last Week Recap
Gold made fresh record highs again last week as protests in Iran and the risk of U.S. involvement increased geopolitical uncertainty and supported safe-haven demand. However, gains slowed later in the week as rising U.S. long-term interest rates capped further upside.

Technical Picture
Gold briefly touched the upper Bollinger Band, creating short-term resistance, before pulling back toward the rising 10-day moving average. Buyers stepped in at that level on Friday, confirming that the broader uptrend remains firmly intact.

Outlook This Week
After such a strong rally, there is always a risk of a short-term pullback, similar to the sharp sell-off seen at the end of 2025. However, as long as prices remain above the 10-day moving average, the broader uptrend is likely to continue. A clearer sell opportunity would only emerge if prices break and hold below the 10-day moving average.

Markets will focus on U.S. GDP, Core PCE inflation, and a possible Supreme Court ruling on tariffs this week. The Bank of Japan is expected to keep rates at 0.75%, though yen weakness could increase pressure for earlier action, while the U.S. holiday on Monday may slow the start.