The tide has turned on USD/JPY as the pair trades sharply below its 52-week Moving Average. Said moving average has been a strong marker of trends in the USD/JPY for the past two decades, and staying below the 52W SMA keeps our focus lower.
Dollar seems to be on pace for further losses. There's a lot of noise surrounding Greece, but my favored USD-shorts remain the Euro, Sterling, and Japanese Yen (as per yesterday's report: www.dailyfx.com
This chart highlights the implied volatility range from Euro/US Dollar FX Options pricing ahead of critical European Finance Ministers meeting as well as the highly-anticipated US Federal Open Market Committee interest rate decision.
Data source: Bloomberg Professional Service
Calculations: David Rodriguez of DailyFX.com
The technical picture looks constructive on the USDOLLAR, but how it reacts at former reaction highs/congestion near 11950 will likely determine short-term direction. Thus far it continues to hold, and staying above keeps our eyes on the 12,000 mark.
The USDJPY looks to be finally breaking out of its range. I wrote about my trade preferences here: www.dailyfx.com . Put simply, when the USDJPY goes it really goes. Given the overall uptrend I think it's reasonable to expect a test of 125.70 at...