Traders can look for USDJPY to push a considerable amount higher as the US Dollar Index (DXY) get’s ready to take out this year’s high.
After spending a few days in a range, the US Dollar is ready for its next leg up. Today the DXY was able to surpass the previous high for June and is now looking to close bullish on the daily time frame. With today’s daily candle most likely being a hammer, traders should expect further bullish momentum to 93.430.
A pair that has closely been following the lead of the DXY is USDJPY. Similar to the DXY, USDJPY has also taken out June’s high today. This week’s weekly candle is also looking to close as a hammer. A quick look at the weekly time frame presents a strong uptrend with a short-term target of 112.000.
This morning’s ADP job numbers came out better than expected at 692,000 versus a forecast of 555,000. This was part of the reason for the strength in the Dollar that was seen today. It’ll be interesting to see if this Friday’s Non-Farm Payroll release would mirror these results and subsequent reactions.
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