{"id":21070,"date":"2026-01-29T09:28:50","date_gmt":"2026-01-29T09:28:50","guid":{"rendered":"https:\/\/alchemymarkets.com\/?post_type=market_insights&#038;p=21070"},"modified":"2026-01-29T09:31:37","modified_gmt":"2026-01-29T09:31:37","slug":"dollar-debasement-jan-2026","status":"publish","type":"market_insights","link":"https:\/\/alchemymarkets.com\/it\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/","title":{"rendered":"Dollar Debasement Hums Grow as DXY, EUR\/USD Test Key Levels"},"content":{"rendered":"\n<p>Markets digested last night\u2019s FOMC with little drama on the surface, but the message was clear enough: <strong>the Fed remains comfortable letting financial conditions stay loose (dovish).<\/strong><\/p>\n\n\n\n<p>This is clearly a weakness for the US dollar, and yields eased, with gold and the stock markets grinding higher on positive earnings. In short, the Fed did nothing to interrupt the prevailing narrative.<\/p>\n\n\n\n<p>That puts the focus firmly back on the charts, which is now telling us an interesting story.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Could it be? DXY falls back onto a 2008 Trendline<\/strong><\/h2>\n\n\n\n<p>DXY has slid back into a long-term monthly trendline area that\u2019s acted as a structural \u201cfloor\u201d before.<\/p>\n\n\n\n<p>This is <strong>still a test, not a breakdown<\/strong>.<\/p>\n\n\n\n<p>What matters next:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A clean weekly close below that support zone is what turns this into a true structural failure.<\/li>\n\n\n\n<li>If DXY holds and rebounds, that\u2019s your first warning that \u201ceveryone short USD\u201d may be getting squeezed.<\/li>\n<\/ul>\n\n\n\n<p>This is exactly the kind of spot where sentiment can be correct long-term, but traders get punished short-term.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2048\" height=\"1292\" src=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-83.png\" alt=\"\" class=\"wp-image-21073\" srcset=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-83.png 2048w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-83-300x189.png 300w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-83-1024x646.png 1024w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-83-768x485.png 768w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-83-1536x969.png 1536w\" sizes=\"auto, (max-width: 2048px) 100vw, 2048px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>EURUSD Signals a Cooloff Period (USD Gaining Some Strength)<\/strong><\/h2>\n\n\n\n<p>EUR\/USD is pressing into a stacked resistance cluster:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the 1.20 psychological zone<\/li>\n\n\n\n<li>a multi-year trendline<\/li>\n\n\n\n<li>channel alignment<\/li>\n\n\n\n<li>and a <a href=\"https:\/\/alchemymarkets.com\/education\/strategies\/bearish-divergence\/\">bearish weekly RSI divergence signal<\/a><\/li>\n<\/ul>\n\n\n\n<p>That mix usually produces at least a cool-off \/ pullback, even if the longer-term bias stays bullish EURUSD (bearish USD). If EURUSD rolls over, it\u2019s the cleanest \u201crisk-on USD bounce\u201d you&#8217;ll get without guessing.<\/p>\n\n\n\n<p><strong>Key idea: <\/strong>EURUSD stalling here, means that DXY can breathe.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2048\" height=\"1292\" src=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-84.png\" alt=\"\" class=\"wp-image-21075\" srcset=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-84.png 2048w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-84-300x189.png 300w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-84-1024x646.png 1024w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-84-768x485.png 768w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-84-1536x969.png 1536w\" sizes=\"auto, (max-width: 2048px) 100vw, 2048px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>USDCHF is Also Trading at Extremes<\/strong><\/h2>\n\n\n\n<p>USD\/CHF is one of the purest \u201cUSD pessimism\u201d expressions. When it hits extreme zones, two things tend to happen:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>downside progress slows (because the trade is crowded)<\/li>\n\n\n\n<li>volatility rises (because tiny catalysts force repositioning)<\/li>\n<\/ul>\n\n\n\n<p>So even if USD weakness continues, this is a zone where you stop expecting smooth continuation.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2048\" height=\"1292\" src=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-85.png\" alt=\"\" class=\"wp-image-21078\" srcset=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-85.png 2048w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-85-300x189.png 300w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-85-1024x646.png 1024w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-85-768x485.png 768w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-85-1536x969.png 1536w\" sizes=\"auto, (max-width: 2048px) 100vw, 2048px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>USDJPY: The Pressure Point for a USD Reversal<\/strong><\/h2>\n\n\n\n<p>USDJPY is where macro theory meets reality. If there\u2019s going to be a meaningful USD squeeze, this pair will almost certainly be involved.<\/p>\n\n\n\n<p>On the weekly chart, USDJPY is reacting around a major structural pivot. Price previously is now pulling back into a former resistance zone that\u2019s attempting to act as support around 151-153.<\/p>\n\n\n\n<p>For now, the price has created a wick at this support level; signalling that USDJPY could at least pause here a little before accelerating lower.<\/p>\n\n\n\n<p><strong>If this support holds:<\/strong><\/p>\n\n\n\n<p>A rotation higher becomes plausible, with upside targets back into the prior supply zones:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>157.7\u2013158.7<\/li>\n\n\n\n<li>then 160.7\u2013161.8<\/li>\n<\/ul>\n\n\n\n<p>That wouldn\u2019t signal a \u201cnew USD bull market\u201d. It just signals a <strong>crowded-trade unwind<\/strong>, given how everyone right now is yelling from the hilltop about Yen Carry unwind, and USD bearish.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2048\" height=\"1292\" src=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-82.png\" alt=\"\" class=\"wp-image-21071\" srcset=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-82.png 2048w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-82-300x189.png 300w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-82-1024x646.png 1024w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-82-768x485.png 768w, https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-82-1536x969.png 1536w\" sizes=\"auto, (max-width: 2048px) 100vw, 2048px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">BOJ Policy Decision<\/h2>\n\n\n\n<p><strong>The next Bank of Japan policy decision is on 18\u201319 March 2026.<\/strong><\/p>\n\n\n\n<p>Street expectations are fairly aligned:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No rate hike in March<\/li>\n\n\n\n<li>Focus on guidance, tone, and any hint of follow-through later in 2026<\/li>\n\n\n\n<li>Continued preference for jawboning and tactical signalling over immediate, heavy FX intervention<\/li>\n<\/ul>\n\n\n\n<p>In other words, the BOJ meeting is unlikely to be the <em>cause<\/em> of the move. It\u2019s more likely to be the excuse, after price has already chosen direction.<\/p>\n\n\n\n<p>That\u2019s why USDJPY should be treated as a <strong>leading indicator<\/strong>, not a lagging reaction trade. Watch the level. Let positioning and price do the talking.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>DXY tests long-term support as EUR\/USD stalls at resistance. Crowded USD shorts raise squeeze risk, with USDJPY a key reversal signal.<\/p>\n","protected":false},"author":159,"featured_media":21095,"parent":0,"comment_status":"open","ping_status":"closed","template":"","market_insights_categories":[17],"class_list":["post-21070","market_insights","type-market_insights","status-publish","has-post-thumbnail","hentry","market_insights_categories-opening-bell"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dollar Debasement Hums Grow as DXY, EUR\/USD Test Key Levels - Alchemy Markets<\/title>\n<meta name=\"description\" content=\"DXY tests long-term support as EUR\/USD stalls at resistance. Crowded USD shorts raise squeeze risk, with USDJPY a key reversal signal.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/alchemymarkets.com\/it\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/\" \/>\n<meta property=\"og:locale\" content=\"it_IT\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dollar Debasement Hums Grow as DXY, EUR\/USD Test Key Levels - Alchemy Markets\" \/>\n<meta property=\"og:description\" content=\"DXY tests long-term support as EUR\/USD stalls at resistance. Crowded USD shorts raise squeeze risk, with USDJPY a key reversal signal.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/alchemymarkets.com\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/\" \/>\n<meta property=\"og:site_name\" content=\"Alchemy Markets\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-29T09:31:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-38.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1408\" \/>\n\t<meta property=\"og:image:height\" content=\"768\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Tempo di lettura stimato\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minuti\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Dollar Debasement Hums Grow as DXY, EUR\/USD Test Key Levels - Alchemy Markets","description":"DXY tests long-term support as EUR\/USD stalls at resistance. Crowded USD shorts raise squeeze risk, with USDJPY a key reversal signal.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/alchemymarkets.com\/it\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/","og_locale":"it_IT","og_type":"article","og_title":"Dollar Debasement Hums Grow as DXY, EUR\/USD Test Key Levels - Alchemy Markets","og_description":"DXY tests long-term support as EUR\/USD stalls at resistance. Crowded USD shorts raise squeeze risk, with USDJPY a key reversal signal.","og_url":"https:\/\/alchemymarkets.com\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/","og_site_name":"Alchemy Markets","article_modified_time":"2026-01-29T09:31:37+00:00","og_image":[{"width":1408,"height":768,"url":"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-38.jpeg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Tempo di lettura stimato":"4 minuti"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/","url":"https:\/\/alchemymarkets.com\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/","name":"Dollar Debasement Hums Grow as DXY, EUR\/USD Test Key Levels - Alchemy Markets","isPartOf":{"@id":"https:\/\/alchemymarkets.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/#primaryimage"},"image":{"@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/#primaryimage"},"thumbnailUrl":"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-38.jpeg","datePublished":"2026-01-29T09:28:50+00:00","dateModified":"2026-01-29T09:31:37+00:00","description":"DXY tests long-term support as EUR\/USD stalls at resistance. Crowded USD shorts raise squeeze risk, with USDJPY a key reversal signal.","breadcrumb":{"@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/#breadcrumb"},"inLanguage":"it-IT","potentialAction":[{"@type":"ReadAction","target":["https:\/\/alchemymarkets.com\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/"]}]},{"@type":"ImageObject","inLanguage":"it-IT","@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/#primaryimage","url":"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-38.jpeg","contentUrl":"https:\/\/alchemymarkets.com\/wp-content\/uploads\/2026\/01\/image-38.jpeg","width":1408,"height":768},{"@type":"BreadcrumbList","@id":"https:\/\/alchemymarkets.com\/education\/market-insights\/opening-bell\/dollar-debasement-jan-2026\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/alchemymarkets.com\/"},{"@type":"ListItem","position":2,"name":"Market Insights","item":"https:\/\/alchemymarkets.com\/education\/market-insights\/"},{"@type":"ListItem","position":3,"name":"Dollar Debasement Hums Grow as DXY, EUR\/USD Test Key Levels"}]},{"@type":"WebSite","@id":"https:\/\/alchemymarkets.com\/#website","url":"https:\/\/alchemymarkets.com\/","name":"Alchemy Markets","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/alchemymarkets.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"it-IT"}]}},"_links":{"self":[{"href":"https:\/\/alchemymarkets.com\/it\/wp-json\/wp\/v2\/market_insights\/21070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alchemymarkets.com\/it\/wp-json\/wp\/v2\/market_insights"}],"about":[{"href":"https:\/\/alchemymarkets.com\/it\/wp-json\/wp\/v2\/types\/market_insights"}],"author":[{"embeddable":true,"href":"https:\/\/alchemymarkets.com\/it\/wp-json\/wp\/v2\/users\/159"}],"replies":[{"embeddable":true,"href":"https:\/\/alchemymarkets.com\/it\/wp-json\/wp\/v2\/comments?post=21070"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alchemymarkets.com\/it\/wp-json\/wp\/v2\/media\/21095"}],"wp:attachment":[{"href":"https:\/\/alchemymarkets.com\/it\/wp-json\/wp\/v2\/media?parent=21070"}],"wp:term":[{"taxonomy":"market_insights_categories","embeddable":true,"href":"https:\/\/alchemymarkets.com\/it\/wp-json\/wp\/v2\/market_insights_categories?post=21070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}