Technical Analysis

Dollar slightly on the weaker side to start the new week

This comes after another trip lower in the past week for the greenback, with USD/JPY being one to watch with the BOJ in focus this week. The pair is down 0.2% to 127.60 levels now with the low earlier hitting 127.21 in Asia trading:

The break below 130.00 remains the significant technical development for the pair since last week but there might be a pause in momentum as markets gear towards the BOJ policy meeting.

There has been plenty of speculation that the central bank may offer up more policy tweaks or at least signal that they are leaning towards that direction but we shall see.

Elsewhere, other major currencies are also holding 20-30 pips gains against the dollar right now. EUR/USD is still building on its upside push from last week, up 0.2% to 1.0855 currently. Meanwhile, AUD/USD is running into a test of the 0.7000 level today – the first time since August last year.

Just a reminder that it is a US holiday today, so trading conditions may be lighter to start the week later on. Both the stock and bond market will be closed.

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