The US Dollar Index (DXY) is seeing bulls come in at the right time as bears almost brought the price to 92.000. With this resurgence, USDJPY is looking to edge higher.
Yesterday’s price action made it seem likely that the DXY would revisit 92.000. However, the price was only able to go as low as 92.100, before bulls drove the price back higher. Today’s price action is severely bullish which can be seen by the daily hammer closure. We expect the price to take out 92.750 and push higher.
Price action traders are looking to go long for USDJPY as the price rebounded from June’s lower low. There was no real intention for the price to close bearish below this level. This was a deep retracement which has been a common occurrence for USDJPY this year. The next target for this pair is July’s high.
It seems likely that the Dollar will continue to be bullish for the next 4-8 weeks as global economies continue to reopen. This means commodities such as Gold would see further losses during that span of time. Trade ideas will be plenty for traders, especially if the Dollar continues moving in a predictable trend.
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