Reasons for buying
Strong USDollar and a hawkish Fed with three rate hikes planned for 2017 with only two hikes already priced in.
Reasons for selling
Profit taking in January for tax purposes
Pound Yen dropped 185 pips yesterday at the open of New York though found support at the daily 21.
Coming off WPP Bulls are targeting WR2 for the week. Resistance eyed at MPP/ WR1/ 145 and then further up at WR2/ MM3/ 146.50.
The 61.8% fib of yesterday's drop coincides with DM3. The MPP/ WR1/ 145 confluence of resistance is higher up at the 78.6% fib. Note that price opened in Asia in the bull buying zone of DM2 - DPP, which gives bulls a target of DM4/ DR2. DM4 coincides with WM4 and DR2 coincides with WR2.
About The Forex Analyst
USDollar Bull based on current FOMC monetary policy. Euro Bear based on current ECB monetary policy. Currently neutral on the Pound. Bear on oil, Cad and Nok. Trade Yen in line with movement of price in Treasuries and seasonality. Bear on Gold due to bias on Dollar. Trade Nzd inline with global dairy prices and RBNZ central banking policy. Trade Aud inline with global commodity prices, Chinese macro and RBA central banking policy. Trade Mexican Peso repatriation at the end of each month. Head Coach at www.MetaTraders.com and analyst at Forex.Today.