The Swiss Franc has rallied to highs that have not been since in 10 plus years versus the Japanese Yen.
While I am gong to use a current example in the EUR/USD, this set up can apply to any intraday trend, especially one that may be closing in on significant support or resistance. In the case of the EUR/USD - it’s resistance.
With the recent strength in the Dollar, coupled with strength in the Dow the Yen has weakened versus the US Dollar Index.
With the Dollar bouncing to its highest level since the partial government shutdown began, investors are revealing their optimism as Republicans hinted at an extension of the debt ceiling.
Risk aversion continues to test the patience of USD/JPY bulls bears. While many - if not most - fundamentals are Japanese yen bearish (therefore USD/JPY bullish), the main story is the continued risk OFF environment created by the U.S. government shutdown and all the ramifications in that wake: the taper, debt ceiling, debt default, equities support. Today the focus is the equities market.
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