Dollar, Yen Increases Consolidation and Trades Stronger As DXY Resumes Upside Run
Login

Dollar, Yen Increases Consolidation and Trades Stronger As DXY Resumes Upside Run

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:

The dollar and the yen are significantly recovering today amid ongoing consolidated trading, fueled by mixed sentiment. Major global trading yields are falling, with US 10-year bond yields below 1.6. The New Zealand dollar is ahead of the Australian dollar’s decline, followed by the pound sterling.

Markets began the week with a moderate tone of risk aversion, with the dollar and yen rising and stocks falling. Fed’s Powell reaffirmed his commitment to supporting the economy amid mounting inflation concerns. Virus problems remain prevalent.

Japanese markets are closed for Greenery Day, focusing on risk catalysts. USD/JPY is making an intraday high of 109.17 while pulling back to 109.15, up 0.07% on the day. Despite the endorsement of the general weakness of the US dollar the previous day, a pair of risk barometers are trying to spiral out of control at the end of the Japanese holidays.

The NZD/JPY was also deflected by the 79.19 resistance and declined noticeably. The focus is again on support at 77.94. A break there should indicate that the consolidation pattern from 79.19 has started another decline. Then there will be a deeper fall to support at 76.64 and below. However, a rebound from the current level will retain the advantage on the side of the upside breakout. The breakout of 79.19 will resume the stronger uptrend.
US Dollar Index Considers Risk Patterns and Data
The index resumes gains after a moderate daily pullback recorded at the beginning of the week, and again reaches 91.00 and above, while flirting with weekly highs and 20-day SMA.

At the same time, the narrative of the US economic recovery seems to have re-emerged among investors and continues to maintain better dollar sentiment, despite the fact that US yields continue to trade in a secondary theme. DXY is softening Monday’s downturn and regaining advantage amid improving sentiment around the dollar.

Further recovery is likely in the near future. However, if the temporary resistance at the 50-day SMA near 91.70 is eliminated, it should open the door for the next visit to the critical 200-day SMA, today at 91.95. Above the latter, bearish pressures are expected to soften somewhat and the outlook may start to shift towards more constructive ones.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News