Asia Mid-Session: US Dollar Whipsawed, Watch USD/JPY Key Resistance At 145.35

[Redator]

US stocks opened higher on Monday, 9 June, but pared gains in the second half after US-China trade talks in London concluded without progress. Talks are set to resume on Tuesday, 10 June. The S&P 500 (+0.1%) and Nasdaq 100 (+0.2%) posted modest gains, while the Russell 2000 outperformed (+0.6%). The Dow Jones Industrial Average ended flat.

President Trump remarked that China is “not easy” as both sides work to ease tensions over tech and rare earth shipments.

JPY was the worst performer after BoJ Ueda’s dovish comments on inflation

The US dollar saw sideways movement after Friday’s stronger-than-expected non-farm payrolls lifted the US Dollar Index by 0.5%. On Monday, the dollar slipped -0.2% ahead of the trade talks but reversed course in early Asian trading on Tuesday, gaining 0.2% to 99.22, though still below its 20-day moving average resistance at 99.60.

The Japanese yen weakened the most among major currencies, falling -0.3% against the dollar. This came after BoJ Governor Ueda stated that Japan's inflation trend remains "some distance away" from the 2% target.

Asian equities bullish tone intact as US-China trade talks rolled over to a second session in London

Asian stock markets extended gains for a second straight session. Japan’s Nikkei 225 rose 0.9%, and Hong Kong’s Hang Seng Index climbed 0.3% in early trade. Notably, the Hang Seng

China Enterprises Index officially entered bull market territory on Monday, closing up 1.7% with a 24% rebound from its 9 April low.

Economic data releases

Fig 1: Key data for today’s Asian mid-session (Source: MarketPulse)

Chart of the day – Potential bearish reversal in USD/JPY

Fig 2: USD/JPY minor trend as of 10 June 2025 (Source: TradingView)

Since its intraday low of 142.53 printed on 5 June 2025, the recent up move seen in the USD/JPY has transformed into a potential minor bearish “Ascending Wedge” configuration as seen on the 1-hour minor time frame.

In addition, the hourly Stochastic oscillator has just traced out a bearish divergence condition at its overbought region that supports an impending minor bearish reversal movement in the USD/JPY.

Watch the 145.35 short-term pivotal resistance (the upper boundary of the “Ascending Wedge” and 76.4% Fibonacci retracement of prior decline from 29 May high to 3 June low), and a break below 144.40 near-term support (lower boundary of the Ascending Wedge and 20-day/50-day moving averages may trigger further weakness towards the next supports at 143.50 and 142.35 (see Fig 2).

On the other hand, a clearance above 145.35 invalidates the bearish tone to see the next intermediate resistance coming in at 146.10 (minor swing highs areas of 29 May, 16 May, 15 May).

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© {CURRENT_YEAR} OANDA Business Information & Services Inc.