Weighing fundamental vs. Technical
A Tug of War is at play with the recent report on the Bank of Japan's aggressive monetary policy that combined Quantitative and qualitative policies that prompted the USDJPY to surge to its highest level @97.18 as of this writing.
However, what drove the US Dollar lower was due to the Jobless claims report coming out from the labor department that have reached a four month high and the jobs numbers. The USDx registered an 83.50 high during early trading sessions and have started to pull back lower to its current price below the 83.00 basis point. And registered a recent low @83.27; currently working @82.50
Reflecting back from our previous analysis dated the 1st of April- stating that the USDx decline would probably come from a US based-data report in this case the Jobless claims have outweighed market sentiments into negative territory. The wide trading range for the USDJPY was a real surprise as it came it earlier than most expected; since the USDJPY came from a registered low @92.55 just last April 2nd. This is the kind of serious trading volatility from a fundamentally oriented market vulnerable to move in both directions in a rapid manner. Click here to continue
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