USDJPY, Daily
The dollar has sprung to life, led by a strong spurt in USDJPY, which is now showing 0.7% gain on the day after rising over 50 pips to levels above 114.20. EURUSD dropped from above 1.0750 to a low of 1.0716 low, bringing recent lows at 1.0706-11 back into scope, a support zone which we see as a key near-term risk level. The dollar’s rally appears to be a delayed reaction to the Dow’s conquering of the 20k level, and with S&P and Nasdaq having clocked record highs yesterday, which in turn reflects a revival in bullish sentiment regarding the Trump administration’s plans to reflate the U.S. economy. The risk-on vibe is also accounting for the yen’s underperformance, as safe haven premiums unwind. USDJPY’s 20- and 50-day moving averages beckon, at 115.15 and 115.02.
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Andria Pichidi
Market Analyst
HotForex
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