Author: Sifu Steve Tee
The greenback demonstrated great strength yesterday during New York session opening, regain above 102.000 price level. With this bullish momentum, US Dollar may continue rally for further correction to 103.500.
The much-anticipated Bank of Japan ‘s monetary and yield control policy was rather disappointing as they left it unchanged, causing a monstrous decline of 2% in one day. Further bearishness can be seen for JPY against the USD unless the BoJ regulators performs an unexpected yield curve policy change, as what they did early of January 2023.
Euro is experiencing a 4 days streak of decline with expectations of a strong US Dollar. This weakness is partially due to BoJ’s decision that became the catalyst of US Dollar’s upside strength. Euro is also heading its way towards 1.07200 possibly for a correction after rallying early of January 2023.
Great Britain Pound
GBP was the most resilient currency against the Dollar’s bounce as it went slight below 1.22000 during London Session and later maintained above 1.22500. However, with similar situation and sentiment as Euro, GBP has been rallying tremendously and it seem to the time for a correction. In comparison with its closely correlated brother, the Euro, GBP is obviously the strength leader. So, it will likely decline in sympathy as US Dollar is deemed to remain bullish. There is a possibility that GBP will be heading towards 1.21500 either this week or next week.