FXStreet (Barcelona) – Analysts at Brown Brothers Harriman explained that the dollar’s heavy tone against the yen helps explain why the Dollar Index’s technical condition is not as bearish as the euro.
Key Quotes:
“The dollar has spent the entire last week of the year below a trend line drawn off the August spike (~JPY116.20) and the mid-October low (~118.00). At the end of next week, it is found near JPY121. The 20-day moving average is about JPY121.40 and falling fast.
The five-day average is around 120.35 and also falling. The RSI is still headed lower while the MACD is bouncing in its trough. A break of JPY120 could quickly bring it into the JPY119.40-JPY119.60 area.”
(Market News Provided by FXstreet)