I’m watching these two and wondering if they’re both getting a bit tired and about to roll over? The USDX is struggling to break above the 2010 highs and the U/J is struggling under 117 and last weeks high. The U/J also has a bit of a bearish ‘Double Top’ starting to form up.
USDX daily: has been on a lengthy rally and some pullback wouldn’t be out of order. Watch the various fib levels for targets IF the index does ever make a bearish wedge breakdown. Obviously any break and hold above 88.50 would be a game changer here:
USDX 4hr: struggling to break up and out above the 88.50 region:
U/J: a bearish ascending channel and possible ‘Double Top’ forming up. However, any break and hold above 117 and the trading channel would be the game changer here:
The ‘elephant in the room’ is whether Japanese PM Abe calls an early election and so traders need to watch out for this potential ‘prime mover’ event. There is also USD PPI data tonight.