Market Sector Scanner: Potential Yen Intervention, Gold Near $5,000 as Dollar Slips
USD/JPY swung sharply on intervention rumors after the BoJ meeting, while gold climbed toward the $5,000 level following Trump’s Greenland comments that boosted geopolitical risk. The U.S. dollar erased its year-to-date gains despite strong GDP, setting the stage for higher volatility this week.
U.S. and Japanese equities were volatile but ended with only small losses as political uncertainty weighed on markets. In Japan, an early election call and a proposed food tax cut unsettled investors, while the BoJ held rates and the yen weakened before USD/JPY briefly fell on talk of possible intervention. Gold hit fresh record highs after Trump’s comments on Greenland sparked volatility and a brief U.S. stock sell-off, while the U.S. dollar erased its year-to-date gains despite strong U.S. GDP.
Scan for opportunities on:
Key Events Calendar for January 26 – January 30
Forex Market
USD/JPY
Last Week Recap
USD/JPY pushed higher early in the week as Japanese bond yields continued to rise ahead of the announced February election, with the Prime Minister proposing a cut to food taxes that could increase government debt. Following the Bank of Japan meeting, rumors that the BoJ was checking market rates ahead of possible intervention triggered a sudden sell-off, with USD/JPY falling sharply and closing the week near its lows.
Technical Picture
After testing recent highs near the upper Bollinger Band, the pair reversed and closed near the lower Bollinger Band. The sharp pullback has weakened the short-term trend and pushed prices to the lowest levels of the year.
Outlook This Week
In the short term, USD/JPY looks very oversold, and in the absence of clear intervention, a recovery is likely. However, if the Bank of Japan uses the recent weakness to push the pair below 155.50, it could trigger another sharp leg lower.
GBP/JPY
Last Week Recap
GBP/JPY climbed to new yearly highs early in the week as stronger-than-expected U.K. employment data supported the pound and the yen remained weak. However, the pair reversed sharply after rumors that the Bank of Japan may be preparing to intervene to buy the yen, leading to a weaker close by the end of the week.
Technical Picture
The move toward the upper Bollinger Band triggered a short-term sell signal, and prices closed below the 10-day moving average. This is a bearish short-term development, leaving the pair vulnerable to further downside.
Outlook This Week
The start of the week will be important. If GBP/JPY can move back above the 10-day moving average, it could present a good buying opportunity. However, until that happens, caution is warranted.
EUR/USD
Last Week Recap
EUR/USD moved higher throughout the week as U.S. dollar weakness emerged following President Trump’s comments, which increased geopolitical risks after he raised the idea of taking control of Greenland. The softer dollar helped push EUR/USD to its highest levels since September last year.
Technical Picture
The pair looks overbought in the short term, with prices trading above the upper Bollinger Band. Despite this, no clear sell signal has been triggered yet, and the market remains above key resistance levels.
Outlook This Week
In the near term, a move back below the upper Bollinger Band could offer a selling opportunity. Alternatively, a pullback toward the rising 10-day moving average may present a better buying setup.
TradingView is now part of your Fintokei challenge
Equities
U.S. Stock Market
Last Week Recap
The Nasdaq came under pressure early in the week after President Trump threatened tariffs on European countries. However, he later reversed the threat, helping stabilize the market. As a result, the Nasdaq managed to close the week only slightly lower.
Technical Picture
The lower Bollinger Band provided support early in the week, and the subsequent return toward the flat 10-day moving average suggests that range-trading conditions are likely to continue.
Outlook
Downside pressure appears to be building for the Nasdaq. However, in the absence of any major surprises or new catalysts, range trading remains the most suitable strategy in the current market environment.
💡 Fintokei tip
Want to know how to trade fundamentals? Our articles will help you.
Commodities
Gold
Last Week Recap
Gold surged to new record highs last week as the U.S. dollar weakened sharply following President Trump’s comments about Greenland, which increased geopolitical uncertainty and sparked strong safe-haven buying.
Technical Picture
The uptrend remains very strong, with the $5,000 level now close. Prices are trading above the upper Bollinger Band, but no sell signal will be triggered unless the market moves back below that band.
Outlook This Week
After such a large rally, there is a risk that $5,000 could act as resistance and lead to a quick pullback. However, short-term momentum remains strong, suggesting there will be many short-term trading opportunities on both the long and short side this week. Over the medium term, higher prices still appear more likely.
Traders should find many short-term trading opportunities this week as volatility increases. Gold is challenging the $5,000 level, markets are watching for possible yen intervention by the Bank of Japan, and equities remain cautious. The FOMC meeting and U.S. Durable Goods Orders data will be key events.
