The Dollar has some life to it as the DXY is up +0.50% for the day. The next target may be 91.90 leaving the door open for USDJPY longs.
For the past six weeks, the DXY has been capped by 91.00. Price was able to push up to this level on many occasions but has failed to close bullish above it. Earlier this afternoon, the DXY finally had a bullish 4hr closure above this level. This price action should pave the way for a run to 91.90.
As the Dollar rallies to the upside, traders are flocking to USDJPY for a potential swing long. Earlier last week, price was able to break out of its six-month downtrend. This morning USDJPY was able to clear a key lower high of the past, and the daily is looking quite bullish. Traders should observe the smaller timeframes for an entry long.
This week we do have the Non-Farm Payroll release where the numbers are expected to be positive for the Dollar. We could see the Dollar dominate the majors this week as it attempts to recovers the losses made during the pandemic.