By -James Stanley
– Even more Fed-speak indicating hawkishness has continued the drive higher in the Dow Jones FXCM Dollar Index, and this has brought to question two previously strong trends in EUR/USD and USD/JPY.
– While USD Strength is showing in many pairs, the prospect of an even stronger Yen could make for attractive short-side resumption strategies in USD/JPY, and we outline technical levels for such an approach below.
– If you’re looking for trading ideas, check out our Trading Guides. And if you want something more short-term in nature, check out our SSI indicator.
The US Dollar rally continues: US Dollar strength has continued as the Greenback has carved out higher-low support off of the 11,960 level that we had pointed out on Friday. This is the 61.8% retracement of the prior major move, and for the past 10 days, this has been a key level in USD.