Even USD/JPY, the little engine that can’t, is showing signs of life after what increasingly looks like an exhaustive extension of the dollar slide…
USD/JPY bounced to 82.48 from 82.11 lows while EUR/USD dipped as low as 1.3957. My view that the dollar move is done (at least for the day) will be bolstered by a sustained move back below the 1.3960 level.
Gold lost a quick $10-12 bucks over the last hour, now at $1349 from $1361.
One factor supporting EUR/USD is that all those euros sold to defend 1.4000 will have to taken back at some point. China usually likes to wait a cent or two to buy them back but given the strength of the trend, the may take what they can get…