The USD is coming down as stocks pushed higher during the US session yesterday. However, the 10 year US yields are consolidating so we have to consider that the USD can see some more intraday strength if 10 year breaks above 4%. If USD would come higher then watch for USDJPY as this one can move up to 150, within current impulsive uptrend. However, buying USDJPY here can be risky as Japan warned Tuesday of “appropriate” action to counter excessive volatility in the currency market after the yen hit a 32-year low against the U.S. dollar amid jitters over further possible intervention and its impact on the economy.
On the other side of coin, the USD weakness may resume vs the EUR while DAX is moving higher. We see index trading at the highs of the day, so EURUSD may try to catch it up after the pair retested the previous highs, it was new support for wave four. As such, we are looking for further upside into a fifth wave while pair trades above 0.9769.
