The technical stars are starting to align for the dollar and it’s certainly going to make for an interesting week of trading. Things have been quiet as of late in the European session as summer time markets are prevailing but the days ahead could be a little different. The dollar now has a recipe to pump higher and it’s all coming down to the technicals.
USD/JPY daily chart
The first and arguably one of the key ingredients is for USD/JPY to make a push back above 145.00. The pair saw gains stall at that level at the end of June amid some verbal jawboning by Japanese officials and murmurs of a more meaningful policy tweak by the BOJ incoming in July.
There isn’t much verbal opposition as of late by Japanese officials and that might yet allow USD/JPY buyers to break through the barrier and start to look towards 150.00 again – when we last saw Japan intervene in the FX market last…
