AI Selloff Hits Asian Markets, Dollar Becomes Safe Haven

The news points to a global sell-off in artificial intelligence stocks, with GOOGL at the center of this theme. The technical picture is also weak: the price is below the SMA20 and SMA50, momentum is lacking with RSI at 42, and MACD is in negative territory. However, MACD is slightly above its signal line and the latest close at 282.6 leaves the 24-hour decline limited (-0.44%), suggesting the selling may already be priced in. Safe-haven demand for the dollar is weighing on risk appetite, raising downside risk in the short term. A moderate downward bias is expected over 1-3 days, but confidence in a sharp decline is low.

The AI-driven selloff in Asian markets is weakening risk appetite, and safe-haven demand for the dollar is creating short-term upward pressure on the DXY. The index is already above its SMA20 and SMA50 at 101.94 and has risen 0.54% in 24 hours; with an RSI of 73.4, it is near overbought territory, which could limit upside potential. MACD is above its signal line and positive, so momentum remains supportive, but overbought conditions increase the risk of a correction. As long as the news flow supports the risk-aversion theme, the bias in favor of the dollar may persist; nevertheless, over a 1-3 day horizon, limited upside and possible profit-taking should be taken into account.

In Asian markets, an AI-driven selloff has reduced risk appetite, and safe-haven demand for the dollar could create short-term upward pressure on USDJPY. However, the technical picture is mixed: the price is slightly above the SMA20 but below the SMA50, RSI at 51 is neutral, and MACD is above the signal line in negative territory. This suggests that the upside may be limited and volatile. Resistance at 158.10 (SMA50) is critical; a break above this level could strengthen momentum. On the downside, 157.88 (SMA20) should be watched as the first support.

The news indicates that an AI-driven selloff hit Asian markets and investors turned to safe havens such as the dollar, signaling a short-term deterioration in risk appetite. The HSI has risen 4.14% over the past 24 hours and, with an RSI of 62.5, is approaching overbought territory; after such a rapid rally, the risk of profit-taking appears to have increased. The MACD line is below its signal line (250.3 versus 294.7), signaling weakening momentum. Although the price is trading above the SMA20 and SMA50, negative sentiment stemming from the news could weigh on the index in the short term. Nevertheless, given the strong trend and support levels, I remain cautious in my downside expectation; a limited pullback is more likely than a sharp selloff.