Dollar’s upward momentum stalls near a key Fibonacci level, limiting further bullish progress.

The dollar index remained firm on Thursday, holding near a nine-week high and heading for its strongest weekly performance in several months.

The greenback’s strength in recent sessions has been underpinned by a sharp decline in the Japanese yen amid political turmoil in Japan, deepening political crises in the US and France, and less dovish-than-expected minutes from the Federal Reserve’s latest policy meeting. The index opened the week with an upside gap on Monday, extending gains through midweek.

Technically, the recent rally pushed the index decisively above the daily Ichimoku cloud (98.01–98.40), enhancing the positive outlook on the daily chart. However, the presence of longer upper shadows on Wednesday and Thursday’s candles indicates that bulls are encountering resistance at the 98.81 zone, which represents the 50% Fibonacci retracement of the 101.80–95.82 decline and aligns with the falling weekly Kijun-sen.

A brief consolidation phase around this area appears likely, as the overbought stochastic supports a pause in momentum. Nonetheless, the overall bullish structure remains intact as long as the index holds above the top of the daily cloud (98.40) or, ideally, maintains support above the cloud base at 98.01, reinforced by the rising daily Tenkan-sen.

A sustained break above the 98.81 pivot would confirm a bullish continuation and open the way toward 99.51 (61.8% Fibonacci) and the psychological 100.00 level in extension.

Resistances: 98.81; 99.00; 99.51; 100.00
Supports: 98.40; 98.10; 98.01; 97.70