Technical Analysis

DXY building a base, USDJPY to follow!


DXY has rebounded sharply following the weakness seen with the opening of the week. From a pure classical point of view, we do believe that DXY is still building a technical base after tracing a falling wedge and activating a strong breakout as seen over the daily graph.  

Additionally, we also can notice a cluster resistance on the chart in the 90.50 regions that should be taken out to affirm the bullish impetus.

Conversely, areas of 88.28 should hold to protect the bullish classical scenario.

Moving to the USDJPY pair, we see the strong pullbacks from 104.60 lows to the current levels of 105.70, suggesting further appreciation based on this rebound from strong classical support.

Furthermore, a positive divergence was already drawn on RSI 14, which still has upside targets to be reached.

A break above 106.30 resistance will expose 108.00 regions, which represent the soft target of our bullish anticipations. 

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