USD/JPY - 106.98... Dlr swung broadly sideways below Wed's 2-week high of 107.01 on Wed as market attention was on other usd majors. Price edged lower fm 106.92 (AUS) to 106.57 in Europe n later gained to 107.04 in NY.

On the bigger picture, dlr's fall fm 118.66 (Dec 2016) to 2019 low at 104. 46 (Sep) confirms early uptrend fm 2016 29-month bottom at 99.00 has hit a top there. Despite hitting a 3-1/2 year bottom of 101.19 in Mar on risk-off trades due to COVID-19 pandemic, dlr's rally to 111.71 due to broad-based usd's strength signals low has been seen. Having said, dlr's drop to 105.99 (Jun), then subsequent break there in Jul n selloff to a 4-1/2 month low of 104.19 on last day of Jul confirms said fall fm 111.71 has resumed, 'bullish convergences' on daily indicators may keep dlr abv 103.20 (80.9% r). This week's break of 106. 47 signals low is made n would extend to 107.53, then 108.16 in late Aug.

Today, despite Thu's resumption of upmove fm Jul's 104.19 low to 107.04, as this lvl was also accompanied by 'bearish divergences' on hourly oscillators, strg gain abv 107.53 is not envisaged n reckon 107.53 should cap upside. Only below 106.47/44 signals temporary top is made n risks retracement twd 105.94.

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AceTrader Team

AceTrader

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