The DXY, or U.S. Dollar Index, is currently trading near the top of the zone it was in before President Biden's election, and is under bearish market flow while the stock market is rising. Technical indicators such as the RSI and CCI are not showing any signs of reversal, and the 50-day moving average has just crossed above the 200-day moving average. The dollar has been hovering around seven-month lows due to concerns about an economic slowdown, and has fallen 1.3% this year after dropping 7.7% in Q4 of 2022. The Japanese yen has been particularly affected by the dollar's strength and speculators are betting that the Bank of Japan may shift to a tighter monetary policy, which has driven a rally in the yen and caused the dollar/yen currency pair to fall 14% in the past three months.
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The information provided by LewkP is for educational and informational purposes only. It should not be considered financial or investment advice. The analysis presented may not be suitable for all investors. Any opinions expressed in this analysis are solely those of LewkP and do not represent the opinions of any other party. LewkP does not provide financial advice and any analysis provided should not be used as the sole basis for making investment decisions. LewkP does not intend for the analysis to be used for intraday trading. LewkP advises that any trading should only be done with caution and only by individuals who are fully in control of their emotions and have a high risk tolerance. LewkP is not responsible for any losses incurred as a result of using the information provided.