Forex: Yen Leverage Breakouts, US Dollar Close Behind
- We've seen significant breaks from a few pairs including USDJPY, but these aren't yet trend-level moves
- The USDollar Index presents severe breakout risk, but the spark may not come until week's end
- In the meantime, the yen and Aussie crosses are providing active trade opportunities
The USDJPY broke resistance on a major congestion pattern - but was this the work of the Japanese yen or the US dollar? At the root of most dollar and yen-based crosses is the rise and fall of risk appetite. Yet, we haven't seen that definitive view on positioning taken in the bellwether S&P 500 and other US equity indexes. A bullish break from the Nikkei 225, however, was influential enough to pressure a wedge breakout from USDJPY and heavy range swing from other yen crosses. These pairs have seen substantial moves, but their follow through now falls back onto the shoulders of risk trends. In today's video, we cover the peak risk opportunities for the dollar, the more restrained opportunities for the yen crosses and building momentum from the Aussie-based pairs.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.