Despite the ongoing optimism over the global economic recovery and the relentless DXY weakness, the Dollar broke out from the 2-week consolidation zone against the Yen. The divergence between this pair, which shows the risk gauge, and the rest of the market is getting interesting. If the Dollar continues to be bid up further against the Yen, then this could be used as a leading indicator that the risk-on sentiment in the rest of the market is coming to an end. If this momentum persists, then the bulls’ next target is 109.20.
Support: 108.50 / 108
Resistance: 109.20 / 109.70
