The USD continued to strengthen against its counterparts yesterday. There seem to be two factors currently feeding USD bulls with the one being the market\u2019s expectations for the Fed\u2019s intentions. Fed policymakers in the past weeks, have highlighted the possibility that the bank may proceed with a more moderated pace in rate cutting than what the market may have been expecting thus providing support for the USD. It\u2019s characteristic that US yields both on shorter as well as on longer-term bonds, were on the rise yesterday, providing additional support for the greenback.<\/p>\n\n\n\n
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In the FX market we note the rise of the USD against the JPY yesterday, with the pair\u2019s price action bouncing on the 149.40 (S1) support line and aiming for the 152.00 (R1) resistance level. We tend to maintain a\u00a0 bullish outlook for the pair as long as the upward trendline guiding the pair since the start of the month remains intact. Furthermore the RSI indicator remains just below the reading of 70 implying a strong bullish sentiment for the pair among market participants and the price action has some distance from the upper Bollinger band, implying that there is still some room for the bulls to play. Should the bulls remains in charge as expected, we may see the pair breaking the 152.00 (R1) resistance line and thus pave the way for\u00a0 the 155.20 (R2) resistance level. For a bearish outlook, we would require the pair to initially the prementioned upward trendline, signalling an interruption of the upward movement and continue to break the 149.40 (S1) support line, aiming for the 146.00 (S2) support level.\u00a0 \u00a0\u00a0\u00a0<\/p>\n\n\n\n