USD continues to weaken, while JPY wins positions

USD continues to crumble against major currencies after Donald Trump has expressed dissatisfaction with the strength of green money and the behavior of most financial leaders in the world. As for the war, the president's weekend meetings did not lead to constructive solutions, which further supports the JPY and weakens the USD.

The cusp of the dollar is most pronounced against the JPY, as a little earlier today it became clear that Bank Of Japan is actively considering a change in its monetary policy. Traders have already accumulated a potential change in interest rates from -0.10% to 0.00%.

The Technical Dollar Index is at a key level of resistance that failed to fall over the past two months. After forming a double peak, the short-lived ascending channel was drilled, then successfully tested in the previous two weeks. Price Action, which the price registers today, is indicative of moods among traders, and we can conclude that the resistance zone remains significant with a high probability of a turnaround to a downward trend. In addition, the Fibonacci 50% correction of the main downward trend, as well as DeMarker, is pointing downwards from a surplus zone. I expect the depreciation of the greenback to remain the same next week. Comments from the Fed or Trump on the issue of monetary policy will lead to high volatility and sharp movements in the dollar.

At the same time, the EUR/USD is on track to record a key breakthrough in a short-term diagonal that may boost the euro's sentiment against the USD.

Source: Reuters

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