The dollar popped higher against the yen after making a new two-month low in the middle of last week (~JPY108.85) and finished the week a little below JPY111.00, snapping a two-week drop, explains the research team at BBH.
“It recorded an outside up week, a bullish bar chart pattern. It closed above its 20-day moving average for the first time in a month, and although the five-day moving average has not crossed above, it looks poised to early in the week ahead. Because US Treasury yields, as we shall see, are not so supportive and the upside momentum in equities appears to have stalled as the quarter draws to a close, it may be best take it one step at a top, even if a more durable dollar low is in place. Initial resistance is JPY111.60 and then JPY112.25, before JPY113.00. On the other hand, a move below JPY110.50 would be an initial warning that the dollar bears have not given up.”
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