The dollar has its fingers in its ears and is going “lalalalalalalalala” to itself and ignoring everything else that is going on.The jobs report was strong but the housing report wasn’t, yet we got not even a flicker of worry as we moved up to a new high at 108.96.
Strong support at 108.80 is toast and the next big level is the 2002 resistance line at 109.35. The big psychological level at 110.00 is inching ever closer.
USD/JPY Monthly chart 18 09 2014
We’ve slipped back on the first test of 109 and I’m still worried that the upside is becoming stretched now. I’m not ready to close longs or go short but I’ll be watching the moves very closely from now on.
