Greetings everyone and happy week ahead!!! We start a week where Dollar strength from last week continues to guide most pairs in favor of the greenback. However I continue to expect that this will be a lower high in the Dollar index and eventually the Dollar will be sold off. We have now reached an important junction regarding my longer-term view for the Dollar index. The 102.30 level remains key for the Dollar index while a break below 97 will imply more downside in the longer-term.
Rejection at the cloud resistance will imply a sharp move down is coming. Specially if the black neck line and the green trend lines are broken.
The USDJPY got rejected last week at important resistance from previous lows.
As long as we hold below the blue rectangle area, we remain bearish looking for 109-108. More pairs analysis in the comments section.
Have a nice day.