The US Dollar Index (DXY) retreated from a recent two-week peak after encountering resistance near the 100-day simple moving average (SMA) and the 38.2% Fibonacci retracement level at approximately 99.75. This technical barrier halted the Greenback's advance early in the new week.
According to FX Street, the DXY attracted selling pressure after failing to sustain gains made on Friday, which had pushed it to a two-week high. The confluence of the 100-SMA and Fibonacci retracement acted as a strong resistance zone, leading to a partial erosion of the previous session’s gains.
For Japanese investors, the movement in the US Dollar Index remains crucial as it influences currency pairs such as USD/JPY, impacting export-driven equities and cross-border investment flows in the FX and equity markets.