The dollar index has rebounded noticeably from a 4-and-a-half-month low of 98.85, helped by outperforming US consumer confidence for March, and recent Fed comments. This morning, the dollar index rallies and touches a 1-week high of 100.02.
Monday March 27, USD/JPY hit the lowest level of 110.10 since November 18, caused by the slump of USD on Trump’s healthcare bill failure.
Since then, the downtrend was held above the significant support line at 110.00, where there is relatively strong support.
On the 4-hourly chart, the 10 SMA has crossed over the 20 SMA from below, indicating the trend has turned bullish.
Today, at 13:30 BST, sees the release of US initial jobless claims (the week ending March 24), Q4 GDP final reading and Q4 PCE inflation figures for March; with better-than-expected readings it is likely to provide further support to USD.
The resistance level is at 111.40, followed by 111.70 and 112.00.
The support line is at 111.00, followed by 110.70 and 110.40.