US$Jpy had another tough day, with the correlation between bond yields and stock market movements now completely broken down, and is currently trading just above new 15 month lows of 106.03.
1 hour/4 hour indicators:Turning lower
Daily Indicators: Turning lower
Weekly Indicators: Turning lower
Preferred Strategy: US$Jpy is currently holding on above the 106.03 session low although the momentum indicators do not look healthy and we could yet see a move to test 106.00, below which would then see little support until the 200 MMA at 105.70. Below here would open the way to the 10 Nov 2016 low at 104.95, as well as the option barriers at 105.00.
On the topside, minor resistance lies at 10650 and 106.85 ahead of 107.00 although this looks highly unlikely to be seen today.
As we said yesterday, technically it looks as though the dollar is headed lower. Fundamentally, while stocks are rising and with several Fed rate hikes looming, I don’t see why the dollar should collapse. Too confusing for me.
Sidelined. Sell rallies?
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